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The Reeves' Paradox is a term for when the following sequence of events results in operational disaster for Small and Medium-sized Enterprises (SMEs):

(1) The management of a business does not believe that it is susceptible to cyber attacks and/or that businesses is not overly reliant on technology. (2) Following on from (1), the management of the business reject the warnings and assistance of industry experts. (3) When the computer system of the business is attacked the management realise the false nature of their assumptions in (1) and (2). (4) After the attack in (3) the business is crippled by lack of access to their computer systems.

Origin: the term derives its name by way of reference to two prominent actors; Keanu Reeves (star of The Matrix) and Christopher Reeve (Superman). The concept was first anecdotally referenced in a Cyber risk management conference in Australia, at which a presenter noted “SMEs that fall prey to the Reeves’ Paradox are by default always ‘inside’ the matrix but they think they aren’t. And then, when they finally realize they are, all is too late – the damage is done, and they end up paralyzed!”

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