The 5 Ways Data Loss Impacts Your Business
Data loss knows no boundaries; it happens to all types of businesses and can strike at any time, resulting in a domino effect of disastrous consequences. Here are the five major ways data loss impacts your business.
1. Productivity disruption
Productivity is the first thing to suffer when your organisation loses its data, whether it’s from an unplanned network outage, hardware or software failure, or malicious cyber attack. Lost files may take hours or even days to recover leading to staff downtime and lost sales. According to the Strategic Resource Institute, companies that can’t resume normal operations within 10 days of a data loss incident will not likely survive.
2. Reputation damage
In the Digital Age, news travels fast. If your company can’t serve its clients or ends up in the headlines as the result of a data loss incident, the negative publicity can damage your business reputation permanently. Some organisations spend hundreds of thousands of pounds repairing their brand after a data loss event.
3. Exposure of confidential information
When data is lost from negligence or theft it can lead to exposure of confidential information. If customer data or employee records are compromised, the Information Commissioner’s Office may levy fines of up £500,000 against your company for failing to comply with the Data Protection Act. The financial consequences are compounded if affected individuals decide to take legal action against your business.
4. Loss of customer loyalty
Customer loyalty is also tarnished after a data loss event, especially if client data is compromised. If current customers can’t trust your company to protect their data, then they may take their business elsewhere. And once the word spreads, it may be an uphill battle to find new clients.
5. Permanent business failure
Data loss also has a number of economic and non-financial impacts on your company. Permanent business failure is the worst possible outcome. Each year, a handful of organisations have to close their doors after a major data loss event. When the financial impact and hidden costs of data loss combine, they create a perfect storm that may be impossible to recover from.
Fortunately, your business can prevent data loss risks with planning and professional help. A combined data tape rotation, media vaulting, and disaster planning solution ensures your information is continuously protected and is readily available to support your data recovery needs.
Archive Document Data Storage (ADDS) provides information management solutions for businesses throughout London, Bristol, Bath, and Swindon. For more information, please contact us by phone or complete the form on this page.