For many, security seems like a blatantly obvious necessity. For others, the need isn't as clear. Many decision-makers don't believe that their organization's product requires in-depth protection. Many administrators believe that the default protections are sufficient. There are certainly some institutions whose needs don't require an elaborate regimen of protections, but no one can skip due diligence.
The exact definition of a "client" varies from organization to organization, but every organization type provides some sort of service to someone. Whether you are a retail outlet or a non-profit organization that provides intangible services to individuals in need that cannot pay for them, your institution has an implicit agreement to protect the information relevant to those who depend on you. They most likely won't have any idea what Hyper-V is or what you use it for, but they will know enough to be displeased if it is revealed that any of your computer systems are not secure. Your organization could be vulnerable to litigation if clients believe their data is not being treated with sufficient importance.
As with clients, stakeholders can mean many things. Simplistically, it's anyone who has a "stake" in the well-being of your organization. This could be members of the board of directors who aren't privy to day-to-day operations. It could be external investors. It could even include the previously mentioned clients. Even if they have no way to understand what's necessary or unnecessary to secure, they expect that it's being handled. Furthermore, they may disagree with you on what data is important to protect. If it's later discovered that something wasn't fully guarded that they assumed was being treated as highly confidential, the response could have extremely negative consequences.
Almost all organizations have digitized some vital information of its employees and volunteers. They expect that this data is held in the highest confidentiality and is well guarded against theft and espionage. Even if the rest of your institution's data requires no particular protection, personnel data must always be safeguarded. In many jurisdictions, this is a legal requirement. Even if you aren't under the rule of law, civil litigation is always a possibility.
In the past, it was believed that attackers came from outside the institution and were simply after quick and easy money sources, such as credit card numbers. However, reality has shown that breaches occur for a wide variety of reasons, and many aren't obvious until after it's too late to do anything about it. The next section, Basic Security Concerns, will highlight a number of both common and unexpected attack types.
You know that you need to protect access to sensitive backend data with frontend passwords. You know that information traveling between the two needs to be encrypted. However, are you aware of every single point that the data will travel through? Is the storage location unprotected? Has there been a recent audit of individuals with access? Is there another application on one of the component systems that allows for unencrypted communications or remote access? Treating any system as though it doesn't need to be secured could allow it to become a gateway for others.
The summary of this section's message is that failing to enact security measures is not an acceptable option. It's not unusual to find people who understand that security is important, but believe that it's simply too expensive and that the systems to be protected are just not worth the effort. In reality, the costs of a breach can be catastrophic. Just adding up the previous points can lead you to that conclusion. Between lawyer bills, court costs, and any awards, litigation costs can be unbearably high. Of course, a breach might directly result in a financial loss of some kind. Beyond that, a loss of trust inevitably follows the compromise of systems, and this can have a greater long-term impact than anything else. Even when all those problems are taken care of, it's still necessary to clean up any damage to the systems and close the exploited breach points.