by Kevin Harris
Data loss is a serious problem. All companies would agree on that. We regularly hear news stories about data loss. These range from the big ones, like the Sony hack last year, to the smaller stories, like the lawyer suing apple over his lost time capsule that we blogged about last week.
But what makes data loss such a big problem? What are the consequences of major data loss? Let’s look at the key consequences executives worry about when they approach data loss.
1. Data Loss can damage a company’s reputation
The biggest data loss concern for executives is the potential for their data loss to hit the news. The knock on effects of a damaged reputation can be huge for any company, in terms of lost revenue and the cost of reinvigorating a brand.
To put this into perspective, a recent survey found that 84% of consumers would stop using a company that had experienced personal data loss.
2. Data loss means data has to be replaced
Another big data loss fear among businesses is losing data that they can’t get back. Data has a huge value these days, and if companies lose records or research archives there is a massive cost attached to replacing it. In some cases data loss leaves companies with a data gap they just can’t fill, forcing some departments to restart projects and processes from scratch. Again there’s a huge cost involved.
3. Data Loss can mean fines
There are a growing number of regulations and laws that govern how companies manage data and outlining the punishments for data loss. In most cases these punishments come in the form of fines, but there is also the potential for other legal consequences for companies who fail to plan for data loss.
Data loss is such a big problem because of the potential cost. But it’s not just the associated cost of the data itself. The other consequences can be even more costly, particularly if you end up with data loss that ends up in the news.