Did you know that 94% of companies suffering from a catastrophic data loss do not survive,among which 43% never reopen and 51% close within two years? This is according to data published by UNITRENDS, in 2017. The impact of data loss on a business can be devastating. But what makes data so important to a company?
With the pace with which today’s work conditions are changing, companies need to react quickly to the changing demands of their customers in a highly competitive environment. But how do companies achieve that? Well, they do not rely on mere guesswork,they depend on high volumes of data,often stored in multiple unrelated software applications and databases, to be able to make the necessary decisions. They analyze and act on data, achieved by effective BI tools, which after being gathered and processed, are used to create reports, which then allow businesses totake advantage of growth opportunities.
Such crucial information or data is a corporate asset, which should be protected to prevent data loss. According to Gartner,the highest growth is expected in security testing, IT outsourcing and data loss prevention (DLP), amongst information security products and services by the end of 2020.
Major Causes of Data Loss
System disasters, natural disasters, human error, malicious activity and security breaches, are all potential reasons for data loss. However, amongst all the causes of data loss, 75% of ALL data loss is due to human error, which can include careless acts like clicking the “Format” or “Delete” button to erase something they are not meant too, as published by Info Security Group. It was further added that 52% of security breaches were caused by human error.In fact, natural disasters, such as fires, floods, earthquakes, etc., contribute only 3% of the data lost.
It is nearly impossible for a human not to make mistakes. However, these become expensive when they become the root cause of security breaches.
Impact of Data Loss on aBusiness
Every business needs to comply with the Data Protection Act, which covers information or data stored on a computer or an organized paper filing system about living people and controls how theirpersonal information is used by businesses, organisations, or the government. Data loss can lead to exposure of confidential information, including employees’ records and customer data, if the cause of loss is theft or negligence. Not being able to comply with the Data Protection Act puts companies at a risk of huge fines that lays an additional financial burden on them.
When a business loses data, the staff spends most of its time trying to recover those lost files, which can take hours or maybe even days. This then leads to downtime and a high level of disruption in productivity. Experts believe that if a company is unable to retrieve the data within 10days, chances of its survival are very low.
As mentioned earlier, analyzing data helps businesses cater to the demands of their customers. Any kind of data loss not only hinders the process, but when this news goes public, it can severely damage the company’s reputation. Current customers will lose trust in the company, which could compel them to take their business elsewhere.
Is There a Solution?
Needless to say, businesses today need to achieve unbeatable data protection planning, using a robust, multi-layered approach that will maintain day-to-day operations and prevent downtime.
Experts at Ancero recommend that when looking for a data protection service provider, make sure they assess your IT needs, beginning with a high-level design phase to determine your continuity objectives to design and implement complete protection and recovery plans with virtualization, security, storage and data center solutions, efficiently and cost effectively.