The Consequences of Business Data Loss
In this digital age, data loss is a major problem for businesses of all sizes. Different factors can cause your business to lose data, each presenting a unique challenge when it comes to data recovery. Regardless of the cause, losing data can have far-reaching consequences for your business.
Here are six things that can happen when you face a data breach.
DISRUPTION OF BUSINESS OPERATIONS
Once you lose the data supporting your business, the first thing to suffer will be your operations. When data is no longer available, it becomes difficult for employees to complete specific tasks. This can have a negative impact on workplace productivity and lead to loss of business and revenue. Such events will deal a major blow to your business finances.
The modern customer is discerning and values their privacy. In today’s world where news travels fast, a data loss incident can cause significant damage to your business’ reputation and brand value. Your business will come across as one with shoddy data security, a factor that will negatively affect how customers perceive you.
EXPOSURE TO POTENTIAL LAWSUITS
Businesses that handle sensitive customer data have to comply with certain data protection laws and regulations. When such data is lost, customers and shareholders can sue you. Dealing with legal battles while trying to recover will make the situation more difficult. Your business may also be subject to legal fees, regulatory fines and settlement fees.
LOSS OF CUSTOMER LOYALTY
Your clients trust you to keep their personal information private and secure. One unexpected data loss event can erode the trust customers have in your business. When clients get to know that their data has been compromised, you may experience significant consumer turnover. This may be accompanied by a dip in revenues.
There are many hidden costs you might incur as a result of your company losing its data. You may need to spend money on investigations and a public relations campaign to redeem your image. Your insurance premiums could also increase considerably.
PERMANENT BUSINESS SHUTDOWN
There is the risk of going out of business after losing valuable data. In case you do not have a backup plan, you take too long to resume operations or you suffer severe financial impacts, your business could permanently close down.
Considering the impact of data loss on your business, it is important to be prepared for the unexpected. Torapath Technologies offers a range of IT solutions to help safeguard your company from a data breach so you can focus on running your business. Contact us today to request our services and protect your company’s sensitive information.