CyberSmart research reveals Irish firms exposed as supply chain cyber risk rises ahead of NIS2

CyberSmart, a leading provider of cyber risk management for small businesses, has released findings from its third annual MSP Survey, revealing that economic pressures are pushing cybersecurity down the priority list for many Irish SMEs, even as cyber threats and supply chain risks continue to grow.

The CyberSmart MSP Survey 2026 found that 42% of MSP customers are more concerned about operational challenges such as rising costs and inflation than cybersecurity risks, despite an increasingly hostile threat landscape. At the same time, AI-driven threats were named the top cybersecurity concern for MSPs (49%).

The 2026 research, conducted by OnePoll, features insights from 100 MSP leaders across Ireland, spanning a range of industries and supporting customers with between 1 and 250+ employees.

MSPs Remain Prime Targets for Cybercriminals

Over three quarters (77%) of MSPs admitted to suffering at least one cyber breach in the last 12 months, with 59% reporting two or more breaches and 40% experiencing three or more incidents. The findings demonstrate that repeat attacks remain commonplace and that MSPs continue to represent valuable targets for cybercriminals due to their privileged access to customer systems and data.

MSPs ranked AI-related threats as the biggest risk facing their organisation (49%), followed by inflation and spiralling costs (43%) and then ransomware/malware infections (40%). Operational concerns such as inflation have climbed sharply up the list of threats facing MSPs over the past year. This reflects the wider economic uncertainty affecting businesses across Ireland.

Supply chain risk has also increased in prominence, with over half (52%) of MSPs and their customers reporting that they had experienced a cyber incident caused by or originating from a supplier or third-party vendor in the past year.

Of those supply chain incidents:

• 48% affected only the customer
• 13% affected only the MSP
• 33% affected both the MSP and the customer

This means that 46% of incidents involved the MSP directly in some way, underlining the critical role MSPs now play within increasingly interconnected supply chains.

Economic Pressures Overtaking Cyber Concerns

The research found that half of MSPs believe that their customers are now more vulnerable to cyber threats than they were 12 months ago. This is significantly less than their British counterparts, where 62% believe their customers are at greater risk. However, when asked about the biggest risks facing customers, MSPs said inflation and rising operational costs were viewed as a greater concern than ransomware, unpatched vulnerabilities or emerging threats.

According to MSP respondents:

• 42% cited inflation and spiralling costs as customers’ top concern
• 41% cited ransomware or malware infections
• 32% cited exploitation of unpatched or undisclosed vulnerabilities
• 30% cited emerging AI threats

The findings suggest that many SMEs are focusing on immediate financial pressures and operational resilience ahead of cyber preparedness, despite the growing sophistication and frequency of attacks.

Despite this, MSPs reported that the vast majority (92%) of their customers demonstrate average or above-average levels of cybersecurity awareness. For British MSPs, this awareness sat lower at 85%.

Compliance and Continuous Monitoring Becoming Business Priorities

Customer expectations of MSPs are also evolving, with 57% of customers now expecting support with cybersecurity compliance requirements in addition to traditional IT and security services.

In response, 62% of MSP leaders say that they’ve increased spending when it comes to specialist regulatory and compliance support over the past year.

However, the research also revealed significant gaps in supply chain oversight. Two thirds (66%) of MSPs do not continuously monitor supply chain risk, while 45% assess supplier risk only quarterly and 13% only annually. The percentage of those who do not continuously monitor is significantly higher than their British counterparts, where half continuously monitor for supply chain risk.

The top challenges MSPs face when securing customers within the supply chain include:

• Managing and enforcing security requirements in contracts (42%)
• The cost of securing and monitoring the supply chain (39%)
• Inconsistent security standards across suppliers (38%)

MSPs and Regulation

MSPs are increasingly falling into the scope of international regulation. These findings come as Irish organisations prepare for stricter cybersecurity and supply chain accountability requirements under the EU’s NIS2 Directive, as well as other regulations like DORA and GDPR.

To better support customers and secure themselves over the next one to three years, MSPs said they are prioritising investment in:

• Continuous monitoring (49%)
• Proactive risk management (46%)
• Cybersecurity training for employees (44%)

Greater Accountability Needed Across the Supply Chain

The findings reflect a broader shift in how organisations view cybersecurity, with resilience, compliance and third-party accountability increasingly becoming shared business responsibilities rather than standalone IT concerns.

“Cyber risk and economic pressure are now inseparable,” said Jamie Akhtar, CEO and Co-Founder of CyberSmart. “Irish SMEs are navigating rising costs, increasing regulatory expectations, such as NIS2, and a changeable threat landscape all at once. MSPs sit at the centre of these environments, which means a single weak link can have far-reaching consequences across customers, suppliers and partners.

“What our research shows is that businesses understand cybersecurity matters, but resilience today is about embedding security into everyday operations without adding unnecessary complexity or cost. Continuous visibility, shared responsibility and stronger supply chain standards will be critical as organisations adapt to increasingly interconnected risks.”

To read the full report, featuring insights from UK and Irish MSP Leaders, visit: https://cybersmart.co.uk/msp-survey-2026/

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