Don’t Let Data Loss Shut Down Your Business
It seems that more and more these days, there are major headlines announcing the fact that another giant corporation or huge agency has suffered a breach resulting in data loss, and that thousands, if not millions of clients have been affected. This in itself can be pretty frightening for everyone who is a subscriber or a client of one of these companies, because it means that your personal data can be in the hands of a criminal seeking to use it for personal gain.
For executives of these giant corporations and agencies, it can be a nightmare as well, because it’s a huge blow to the credibility of the company, conveying the notion that inadequate security measures were being used, and that customer data was not afforded proper importance. When companies suffer a loss of credibility and reputation, that usually translates to a loss of business as well, as clients abandon the company for theoretically safer places.
Then too, there can be a much more bottom-line effect which results from a data breach, and that can be expressed in dollars. In some cases, a cyber-attacker will hold the data hostage from a corporation, and he/she will demand some ransom amount for the safe return of the data. If that business-critical data has not been properly backed up on a regular basis, the company might have no recourse whatsoever, other than to pay the demanded ransom figure, so that data can be recovered.
Small Business Attacks
All this is pretty disconcerting in and of itself, with weekly or monthly attacks garnering national attention. However, the attacks which don’t make headline news are much more common, albeit perhaps not quite so spectacular, in terms of dollar amounts and in terms of numbers of customers affected. Many cyber attackers have eschewed attacks on corporate entities because they tend to be well protected, and instead have turned their attention to the endless number of small businesses operating in the country, simply because there are so many inviting targets.
While the profits to be earned from attacking small businesses aren’t quite so impressive, the sheer number of possible targets makes up for it, in terms of volume. It has been estimated that a small to medium-sized business which has suffered data loss to a cyber-attacker will typically lose about 25% of its daily revenue, one week after a loss. One month after a data loss, the estimated daily revenue losses will have climbed to around 40%, which is more than enough to cripple most small to medium-sized businesses.
Data maintained by the National Archives and Records Administration (NARA) reveals that when small to medium-sized businesses suffer a significant data loss, which triggers a period of downtime lasting at least 10 days, more than 93% have had to file bankruptcy within a year of the incident. Even more startling, more than 50% of those companies didn’t even waste a year’s time, and they had to file bankruptcy immediately after the data loss.
Records kept by the same NARA agency in Washington, D.C. show that small to medium-size businesses with no data recovery plans, go out of business at a rate of 43% following any significant data loss. All these facts and figures should point up the critical need for data backups and data recovery plans. Those companies which think they will never be the ones impacted by cyber-attack, and which don’t take the necessary steps to prevent disaster resulting from such attacks, are the companies which very often are forced to file for bankruptcy.
There is simply no substitute for being proactive about your data protection processes, and for having a formalized plan for backup and recovery. More than this, these processes should be periodically tested to ensure that they are still valid and that they are providing maximum effectiveness against data loss. Failure to implement such safety procedures can make it much more likely that a small to medium-size business will end up as one of those statistics regarding the fate of companies experiencing significant data loss.
How to go About Protecting Against Data Loss
Data backups should occur either daily or weekly, depending on cost-effectiveness and on the volume of transactions your business accumulates in a single day. If you have a high volume of transactions every day, chances are you’ll need to have daily backups, because if your backups are no more current than last week, you will have lost a tremendous number of transactions, if you have to restore from a week ago.
Make sure that your data backups are actually saving the data that you need, and also make sure that the restore process functions as it should, in the event that you have to carry through on it, to retrieve business-critical data.
Regarding the data to be backed up, you should have a prioritized approach, which assigns the most resources to the most important data. Your business-critical data is comprised of all the customer data that you store for clients, all personal data, and all data necessary for daily operations. Company managers can determine this priority scheme with I.T. personnel so that if you do have limited resources for data backup and recovery, you can always be sure that the most important data is saved, and can be restored whenever necessary. With this approach in mind, you will ensure that any possible data loss will not be irrevocable.