It could be considered focusing on the negatives – because the potential consequences of data loss are very negative indeed – but anything that drives home the seriousness of data protection is essential knowledge for any company, of anysize, trading anywhere in the world. Cybersecurity exerts Hillstone Networks stress that there is only one difference between cybersecurity for small companies and large – a large company can potentially weather the consequences of data loss, but they could sink a small company.
And this advice is best aimed at smaller companies, simply because the best advice and most essential advice of allwhen it comes to cybersecurityis this: get everything in place from day one. At the outset of a company’s journey of growth, the personal data they are handling is likely to be manageable without too much cost, and it is also likely not to be the most sensitive of data.
No massive hemorrhage of capital or jobs is likely to result from a data breach at a small company. But the financial, legal, and reputational ruin could still have the potential to wipe them out of existence. The take-away, therefore, is that data protection at small companies is very doable – but it absolutely needs to be done.
One of the best ways to drive home this point is to look at the, frankly scary, consequences of a data breach at any company. Hillstone Networks say that this alone should be enough to start you thinking about firewalls, cloud protection, physical security, and employee education.
Four Consequences of Data Loss
Sohere follows what could happen if a data loss occurs at your company. Knowing the consequences often reveals the way to avoid them. In any case, this is some of the most important knowledge for small companies.
Serious Financial Loss
Business finances are, of course, the lifeblood of any business. And a blow to them is like a (potentially fatal) wound. We mentioned legal penalties, but here we are actually talking about the value of dataand the blow of losing it. Certain data is essential for the operation of a business. You cannot close contracts or organize payment without certain data.Furthermore, recovering the data your business cannot function without is neither free nor quick. Make no mistake – lose data, lose money.
A Wrench in the Works of Productivity
Closely related to the previous point is this one about how a business runs on data and how losing it can jeopardize productivity. Data doesn’t just need to be present for business operations to go on unimpeded, it needs to be perfectly organized for use by employees in the course of the workflow. Even if you get the data back, you might lose that organization.
Loss of Reputation
Would you trust a company with your personal data if they were known to have lost the very same type of data a couple of months previously? Businesses run on reputation too, and the loss of it could mean the loss of existing customersand an inability to get new ones.
Legal Repercussions
We can double up this point with the previous one too. Legal repercussions will hit you in two ways. For one thing they are expensive, andfor another, they are not discrete. If your company suffers legal penalties, this becomes public knowledge. So, as well as the crippling effects of a massive fine, you could have a black mark scored across your company’s reputation.
And that wraps up four of the most serious consequences of data loss.Do not let it happen to you.
