As entrepreneurs, we’re always on the lookout for the best business solutions. These things come in so many different ways, shapes, and forms, but, while we are on the lookout for the positives, we can overlook the negatives to an extent. One of the biggest negatives every business has to be concerned about is loss of data. Because there are so many different methods of data theft, from malware and spyware, as well as the good old-fashioned physical methods of theft, we have to be comprehensive in how we protect our data. And the best thing to do first is to make every employee aware of the impact of data loss on a business. But first, you need to know this…
The business reputation
As news travels fast nowadays, your reputation can go down the tubes just as fast. Having negative publicity is going to have a devastating impact on your brand, meaning that it could take a lot of money and clever marketing to get your business back up to speed.
The impact on productivity
The productivity is one of the first things that is severely affected as the result of data loss. From system downtime, all the way through to the impact on the bottom line, it filters all the way through the organization. Creating a data loss prevention policy is one of those things that can benefit you from the inside, and the Legal Imaging LLC website has an article on creating a data loss prevention policy without prior experience. But, it’s about making sure that your staff know what they can do individually to keep the ship afloat if there are issues in relation to productivity. One small system outage now doesn’t just have an immediate impact, but it can affect you further down the line.
The financial penalties
If you suffer a data breach, as so many companies do nowadays, the impact is not just on your company, but you could end up losing a lot of money through the government penalizing you for not taking the appropriate measures. It varies depending on the severity of the data breach, but if you are a small start-up company, it’s not going to be an expense that you would have the money to pay for.
How your customers perceive you
And as the damage hits your brand, this immediately filters through to the customer. If you hold sensitive information, such as names, addresses, and bank details, your customers are very likely going to jump ship and go somewhere else. To repair your relationship with the customer, this, again, will cost money, but it will also require a whole new method of engaging with the consumer. And this is why you need to have a proper procedure in place at the very outset. Data loss is one of the most common problems every business suffers from now, so if you don’t have a procedure in place in which to deal with these issues, this could be the very reason your company goes down the tubes quick.
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