The Cost of Not Having Backup and Disaster Recovery in Place

Experts estimate that humans produce 2.5 quintillion bytes of data every day.1 That is a lot of information. However, having a poor backup strategy can wipe out all or vast portions of your data in a single click. From accidental deletions and malicious attacks to natural disasters, there are multiple ways by which you can lose your business data. Therefore, make sure a robust backup and disaster recovery (BDR) solution is an integral part of your business. When you lose crucial data permanently, the consequences can be devastating. Some costly aftereffects of not having backup and disaster recovery in place.

1. Productivity Disruptions of not having backup and disaster recovery in place: Companies hit by an incident face an average of close to 200 hours per year of downtime.
2. Loss of customer trust of not having backup and disaster recovery in place: One-third of customers end their association with a business following a severe data-loss incident.
3. Regulatory penalties of not having backup and disaster recovery in place: The penalties may vary based on the regulatory bodies governing your industry, and they can cost millions of dollars.

It is your organizational responsibility to equip your business with an effective backup and disaster recovery solution, irrespective of your business’s size, industry, or location. Let us take a look at how significant backup and disaster recovery is to the following business industries:

Healthcare

There can be severe complications when data loss happens in the healthcare industry when :

1. If a patient’s health records go missing when needed, a life-saving surgery could get delayed or denied.
2. Without the billing records, a hospital cannot process payments.
3. Regulatory bodies like HIPAA slap hefty fines on hospitals for carelessly handling data. HIPAA can impose penalties anywhere between $100 to $50,000 for an individual violation, with a maximum fine of $1.5 million per calendar year of neglect.4

Alarmingly, the healthcare industry was the worst-hit industry by cyberattacks in 2020.3 Therefore, backup and disaster recovery are critically important in the healthcare industry.

Finance

A robust backup and disaster recovery solution is an important part of any financial institution’s growth and survival.

Financial institutions must comply with requirements put forward by:

1. Regulations like the Gramm-Leach-Bliley Act (GLBA)
2. Financial agency regulatory agencies like the Financial Industry Regulatory Authority (FINRA)
3. International regulators such as the Financial Conduct Authority (FCA)
4. The Securities and Exchange Commission (SEC)

An effective backup and disaster recovery solution is a mandatory requirement highlighted by all the concerned authorities mentioned above. Additionally, having one in place helps these institutions protect employee productivity and ensure customers quickly regain access to essential services following a data-loss event.

Adopt Backup and Disaster Recovery Before It Is Too Late

Avoiding data loss at any cost is vital for your business to survive and thrive. It is, therefore, highly recommended to have the right Backup and Disaster Recovery provider to maintain control of business-critical data. If you are confused about how to take the first step, do not worry. We are here to help. Our Backup and Disaster Recovery expertise can help your business sail smoothly without being caught in the whirlpool of data loss. Contact us now to learn more.

Article curated and used by permission.

Sources:
1. Techjury.net
2. IDC Report
3. IBM Cost of Data Breach Report
4. National Library of Medicine