Most businesses consider their data to be their most valuable asset and losing that data can be detrimental to the longevity of the business. Although there so many unforeseen consequences of data loss, most of these are not apparent until after a data loss event occurs.
As Joni Mitchell once sang; “You don’t know what you’ve got ‘till it’s gone. It is always important to ensure that you backup your critical business data regularly, safely & in a restorable form in case you experience a data loss disaster in your organization.
The following are the consequences & effects of Data loss to a Business.
Loss of business
A sudden data loss can cripple your company, stopping it in its tracks. Even if you have hard disc back-ups, these can take days to restore, assuming you still have the machines to restore them to, and that they have been kept up to date. Most businesses hope to recover 65 percent of their lost data, but sometimes 65 percent is not enough to keep a business running. If you lose the key data involving financial/ client information and/or creative property, you run the risk of losing what you needed to run your business.
Threat of Identity Theft
If your data loss is due to malware or hackers, then you run the risk of identity theft. Not only is your business at risk, but the identities of your staff, shareholders and all of your clients as well, especially if you keep important social security or credit card information on file. This will not only cost money for the companies and individuals who are targeted, but can also have a devastating effect on your company’s reputation.
Efficient access to data is essential for business productivity. Unfortunately, productivity is the first casualty of data loss. Hours or days can be spent recovering lost information, data or databases. The more time spent picking up the pieces after a data loss event means less time is available to focus on revenue-generating activities.
Brand reputation damage
Of all the non-financial impacts of data loss to your business, damage to your company’s brand may be the hardest to repair. Building a trusted brand can take a monumental effort over a span of many years, and one data loss incident can render all of that hard work worthless.
The famous adage, “There’s no such thing as bad publicity,” doesn’t apply to a data loss scenario. If your company is responsible for an information breach, it will very likely result in negative media attention. No company wants to be the next big data breach story.
If you lose your data, your IT department will have to work overtime in order to recover lost files, install new and improved anti-malware and anti-virus software, and implement a new backup procedure. More than likely, you will pay out of your own pocket in order to cover these repairs, and you cannot guarantee that the new backup procedures are being tested regularly.
With The Internet teeming with cybercriminals armed with increasingly sophisticated malware designed to steal your data – or extort your organization for cash. It’s an evolutionary threat to every organization doing business across the Internet that a data loss disaster might hit your business.
The only sure way to ensure that your business does not suffer the above consequences is by ensuring that you have backed up all your critical business data regularly, safely and offsite to ensure data restoration and Business Continuity whenever these data loss disasters strike.