Data loss incidents, when an organization suffers the loss of valuable data, can cause considerable harm to the business. The loss may be as a result of a natural disaster, fire, or theft, and the impact can be irreparable. Yet statistics show that relatively few organizations adopt robust data protection policies. This is short-sighted because sensitive and important data is held in the cloud, and its loss, even if temporary, can hurt the organization.
Risk of Data Loss
The most likely reason for the loss of data is through a natural disaster, and interestingly, significant portions of the country are at risk in one way or other. Heavy flooding, hurricanes, and earthquakes have a wide geographical spread and one incident can affect a large area, so it’s important to consider not only the business location, but also the location of data servers. In addition to natural events, data may also be lost through fire and theft.
An easy way to understand the business risk is to ask one simple question: What if we lose our data?
According to a 2014 Global IT Study that surveyed 3,300 respondents, 64 percent of organizations experienced data loss in the last 12 months. The research highlighted that the cost to enterprises of lost data and downtime was $1.7 trillion.
Researchers found that although a high percentage of organizations had disaster recovery plans in place, relatively few had implemented effective data protection practices and less than half employed remote, cloud-based data protection.
Impact of Lost Data
There are two aspects of data loss that affect organizations. Firstly, there’s the loss of the data itself that may include essential operational information, critical customer data, and proprietary information, all of which affects the company’s ability to function. Secondly, there is downtime that inevitably arises from the incident as the organization works to recreate or recover the data. In the worst-case scenario, an organization might have to suspend operations for a period of time, resulting in lost revenue.
Apart from the short-term losses, businesses may incur ongoing difficulties that lead to the loss of customers, lower sales, and long-term reduction in revenue. In many instances this can mean closure or bankruptcy.
Based on the Global IT research, companies need to take the risk of data loss seriously and implement a workable disaster recovery (DR) plan.
Disaster Recovery Plan
Although a comprehensive DR plan needs to consider all aspects of disaster recovery, there can be no recovery if the data is not available. Consequently, at the core of the DR plan must be a process for ongoing data backup and remote storage. Should data be lost, this would mean that it can be recovered, operating systems restored, and business resumed with little delay.
Contingency planning must allow for the possibility of partial or complete loss of data. Additionally, apart from allowing for natural calamities, plans should factor in the risk of man-made catastrophes, such as fire, explosion, equipment failure, and data theft.
Every business faces the possibility of losing data in one way or another. It’s imperative to be ready for a disaster to strike, so that when it does, businesses are able to respond promptly and effectively to restore data and get back online.