Back

How a Data Breach Can Affect Your Small Business

Posted on December 23, 2015

You don’t have to be a mega corporation to wind up being a juicy target for hackers, phishers, and scammers. Big or small, no business is immune to cybercriminals looking for their next victim. And while data breaches can be harmful to a company of any size, small businesses simply don’t have the same capital as the big guys, and as a result, are going to feel a much greater pinch. Here are just some of the ways a data breach can affect your business.

Loss of Data

Thinking about eliminating all your hard copies? Before you destroy all your documentation and upgrade to digital storage, you might want to rethink it. If a data breach results in corruption or deletions of vital files you need to run your business, you’re could put your entire operation in jeopardy. To help avoid the fallout from a loss of data, it is crucial to have a well-developed backup plan in place.

Loss of Productivity

The financial consequences of a data breach can be extensive. For instance, your company is more than likely going to experience costly downtime. What’s more, you will almost certainly have to report the breach to affected parties, potentially leading to lost clients and revenue.

Possible Fines

When it comes to the regulations regarding certain kinds of data, the responsibly rests on your shoulders to protect sensitive client and employee information from data breaches. If you haven’t taken the necessary steps to ensure the safety of crucial data, it could lead to an investigation and possible penalties.

Damaged Reputation

Over time, your business might be able to endure the ramifications of lost or stolen data. Unfortunately, however, it can be extremely difficult to recover from the stigma associated with a data breach, and gain back customer confidence. Furthermore, many small to medium size businesses simply don’t have the resources to weather the storm.

 

Today, the risk of data breach is greater than ever. Proper security, however, does not have to be complex. By implementing the appropriate safeguards and partnering with the right records storage and management provider, you will be able to prevent your business from becoming the next cautionary tale.

For the most comprehensive records management services at affordable prices, contact us today!