In the modern world, there’s really no excuse for data loss. However, many businesses are still failing to take the proper precautions. Unfortunately, it can be hard to fully understand the issues that tend to arise after a loss of data unless you have had to directly face them for yourself. Here are just a few of the most common issues that you don’t want to experience first-hand.
- Excessive Costs
Firstly, it can be difficult to properly assess the costs involved in a loss of data. Since this commonly occurs when a business has not availed itself of managed IT services, data loss means having to seek out experienced professionals who are able to offer immediate assistance. If you aren’t covered as part of an IT plan, such services can command top dollar. You may also have to replace valuable pieces of hardware.
- Extensive Downtime
If your data is lost, it’s likely that your business won’t be able to run effectively until everything has been recovered. In the meantime, you may find yourself unable to keep to your commitments, turning away work that you were relying upon to maintain a health cashflow. Any period of downtime is going to tarnish your reputation and make other businesses less likely to do business with you.
- Fines and Legal Action
If you run a larger business, it’s possible that shareholders will threaten legal action in the form of shareholder suits when data loss significantly impacts operations and causes the business to underperform. Of course, most smaller businesses don’t have shareholders, but you may find yourself unable to complete work you were contractually obliged to provide by a certain date, and the contract you signed may stipulate a fine if the work is not produced.
- Data Theft
Finally, it’s worth keeping in mind that data loss is often accompanied by data theft. It could be that the loss was simply down to damaged hardware, but viruses and other types of malicious software can also be the root cause. In such cases, you may have lost private data to unscrupulous outsiders.