Losing vital customer or employee data can have disastrous consequences for a business, often leading to extensive financial losses that can leave business owners in great amounts of debt.
Reimbursing customers, recovering lost information and recreating data from scratch all carry costs that can be potentially fatal to a company, especially a relatively young one. As well as having financial implications, data loss can impact on the reputation of a business in a highly negative way. As this infographic from Imprima shows, the majority of businesses that experience a major data loss shut down within two years. This is due to both monetary losses and a drop in custom due to negative press.
Even though the consequences of losing data are undeniably damaging, a worrying number of businesses are not taking preventative measures.
Click on the inforgraphic to enlarge it
According to one report, 77% of employees admit to leaving their computers unattended on at least one occasion. This suggests that employers need to make their staff aware of what can happen when sensitive information falls into the wrong hands. However, the majority of employers do not consider this to be a priority and do not have a strategy in place to educate their employees about security. This negligence is evident in the lack of importance employers place on security measures, as 60% of small to medium businesses say that they do not regularly back up data and 78% report having experienced at least one data breach in the past two years.
Making employees aware of the causes of data loss can help to protect sensitive information and prevent a data breach from occurring. As 35% of data loss incidents are related to malware and 21% to email attacks, training staff members to recognise malicious emails and sites can go a long way towards helping a company to avoid data loss and all the negative consequences that it results in. Shockingly, a report from the British Chambers of Commerce showed that 93% of businesses that experience a data breach over ten days or more file for bankruptcy within a year, and 50% do so immediately. This highlights the importance of taking preventative measures to protect sensitive data within a business, as well as having a strategy in place in case a breach does occur.