When it comes to common causes of data loss for businesses, many different things can result in significant losses. Accidental deletion and data corruption often occur, while natural disasters like fires, floods, hurricanes, and tornadoes can also cause considerable damage. It’s important to know what common causes of data loss you should be preparing for so your business doesn’t take any unnecessary risks!
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Downtime And Data Loss Statistics
An hour of downtime on average costs a small business $8000, a medium-sized business $74,000, while an enterprise loses over $700,000 per hour of downtime. The cost of downtime and data loss is staggering, but fortunately, most businesses don’t have to deal with these issues very often. For example, only 1% of small businesses experience more than one hour of downtime every year, while 5% of medium companies experience more than two hours of downtime annually.
However, the number jumps significantly for larger organizations, where 10% of large businesses experience more than three hours of downtime each year, and 15% of them experience more than four hours of downtime every year. The average time it takes a business to recover from a disaster is 18 hours, while 40% of companies never fully recover, and around 70 percent of companies end up failing within three years.
Why Data Loss Is So Common
It’s common knowledge that data loss is terrible. But why is this so prevalent? Why is it so difficult to protect our data? The answer lies in how we handle it once we lose it. Most businesses don’t deal with data loss well because they don’t know where to start. They don’t know how to restore it, and they don’t understand how to recover it. When it comes to data loss, most businesses are pretty much lost.
The best thing businesses can do to prevent data loss is to always back up their data in multiple places. This ensures that if something goes wrong, they still have access to their data. If they had backed up their data in just one location, then they wouldn’t be able to recover it if anything went wrong with that device. Furthermore, businesses need to make sure that they store their backups offsite as well. Not only does this ensure that they won’t lose everything if they ever get hacked or attacked, but it also allows their IT provider to quickly retrieve their data when they need it.
Sadly, data loss is inevitable. It’s not if anymore, it’s when. We put our faith in technology, thinking that if we build it, it will come. However, most people don’t realize that technology is only as reliable as the person who uses it. That’s why training and education are key to keeping your data safe.
The Leading Causes Of Data Loss
- Server Crash or Hardware Failure – This one is pretty self-explanatory. If your computer system fails, you won’t have access to your files and data. The same goes for mechanical failure if your hard drive crashes or your backup software stops working correctly. It is essential to keep backups of your data because they provide an easy way to recover from these situations. Also, the use of solid-state drives has made server crash recovery much more manageable.
- Human Error – Human failure is probably the most common reason why people lose data. People make mistakes all the time, and it’s not always intentional. For example, employees may accidentally delete a file or leave a USB stick plugged into their computer overnight without realizing it. Another common mistake is forgetting to back up a file before deleting it. Even though these errors are unintentional, they still lead to lost data.
- Virus/Malware Attack – Viruses, social engineering, phishing, malware attacks, and software corruption are other common causes of data loss. These malicious programs often get onto computers through email attachments, downloads, and other means. Once malicious software gains access to your network, viruses and malware do damage. They can slow down the speed of your computer, corrupt files, and even steal sensitive information. Installing antivirus software can help, but you still need to be diligent to spot email-based attacks.
- User Error – We’ve all been there before. You delete something by accident, then realize too late that you deleted an important file. Or maybe you accidentally click “Delete” instead of “Cancel” when deleting a file. These types of mistakes are easy to make, but they can cost you dearly.
- Theft – Stealing data from your business is a huge problem. Hackers can break into your systems and steal all kinds of sensitive information. Your customers’ personal information could fall into the wrong hands, and you could lose thousands of dollars in sales.
- Network Outage – Whether it’s a power outage, network hardware failure, fire, flood, or hurricane, a network outage can be devastating to your business. Without access to your data, you can’t do anything. In fact, without proper backups, a single network outage can mean the end of your business.
- Natural Disasters – Hurricanes, floods, tornadoes, earthquakes, and fires can strike anywhere at any time. No matter where you live, you should still prepare for these events. It’s better to be safe than sorry!
- System Malfunction – Even the best-designed hardware has problems sometimes. Computers don’t last forever, and eventually, they will fail. A faulty motherboard or disk drive can lead to total system failure. Regularly checking your machines for signs of physical damage can significantly reduce the odds of a malfunction.
- Water Damage – Flooding, water leaks, and other forms of water damage are hazardous to your business. Water damage can destroy everything from your electronics to your furniture. And if your office happens to catch on fire, you might not have much time to get out.
- Power Surges and Power Failure – Power surges are just as dangerous as fire. They can fry your electrical components, causing them to malfunction. This can quickly turn your office into a death trap.
- Data Corruption – Corrupted data and file corruption can cause serious issues. For example, corrupted payroll records can leave your company open to identity theft.
- Rogue Access Point – A malicious insider sets up an unauthorized wireless router in your facility to gain access to your network. If this happens, hackers can use the rogue access point to gain unauthorized access to your network.
- Software Failure – Software malfunctions can occur anytime, whether due to a virus attack, power surge, or other factors. The result? Your entire network goes offline.
How Can The Risk Of Data Loss Be Reduced?
The good news about data loss is that it’s not too late to prevent disaster from striking your organization. There are several steps you can take to minimize your risk of data loss:
- Regularly back up your data – Make sure you’re running regular backups, whether it’s through a local backup solution or a cloud service. You want to make sure your data is backed up in case something goes wrong. Pro-tip, even though you might think you’ve taken care of backing up your data, you should still test out your backup plan periodically. You may find that your backup system has failed, and you need to get your data back before things go south.
- Protect your servers – Servers are critical to running your business, so ensure they’re protected from damage. Keep them away from water sources, and install firewalls, anti-virus software, surge protectors, and other security measures to prevent security breaches.
- Don’t rely on just one device – It’s vital to ensure that you don’t depend on one device to store your data. You want to make sure that you have a backup strategy in place that covers all of your bases.
Be prepared for the worst – Don’t wait for catastrophic data loss before preparing for it. Be proactive and set up your backup system and auto-recovery operations now so that when disaster strikes, you won’t be left scrambling.
Here are some more tips for protecting your business against downtime and data loss:
- Educate Yourself
- Learn How To Protect Your Business From Threats
- Have An IT Firm Perform A Risk Assessment
- Employ A Robust Disaster Recovery Plan
- Invest In Backup Disaster Recovery Equipment
- Use 256-bit Advanced Encryption Standard Software
- Install A Firewall And Anti-virus Software
- Update Your Operating System Frequently
- Deploy Anti-Theft Software
- Avoid Unnecessary Risks
- Implement Security Measures To Protect Against Wireless Routers
- Maintain Proper Inventory Control
- Use Strong Passwords
- Be Vigilant About Data Loss Prevention
- Monitor Log Files For Errors
- Document All Potential Hazards
Accidental loss of data is never fun, but you can help mitigate its effects and avoid disaster with the tips above.
Wrapping Up
Data loss can be devastating to any business. Fortunately, there are ways to avoid it. By implementing a backup plan, investing in reliable hardware, and taking preventive measures, you can significantly lower the odds of falling victim to any common causes of data loss we covered in this article. If you enjoyed reading our blog post, feel free to share it with others!
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