A data breach can have disastrous consequences for a small business. A company’s failure to keep information – particularly customer information – safe can result in millions of dollars in lost revenue and potential fines, not to mention the impact on a company’s reputation.. Small businesses need to understand the risks associated with on-site data storage and learn the consequences of security failures.
Valerie O’Shoney, a specialty insurance professional, spoke with the online publication Business News Daily about the causes and effects of data breaches and what small businesses can do to prevent them. O’Shoney noted that the biggest concern businesses should have is the reputation hit they will receive from their customers.
“Once customers are notified that their information has been breached, they are understandably concerned and upset,” O’Shoney said. “Damage control is critical to mitigate the impact of a breach both on the victims and on the business’ reputation.”
In addition to the direct costs associated with lost business, companies that suffer a breach could also endure indirect costs from high customer turnover. For example, if a business’ reputation is tarnished, their marketing efforts will return far less positive results. In short, preventing the theft of customer information if of the utmost importance.
While converting some customer data to digital format and storing it in a cloud environment may work for some companies, it is not always possible. Various regulations require the retention of paper records, which can be susceptible to a breach if they are improperly stored or disorganized within the confines of the office. If on-site storage is deemed unsafe, some businesses could benefit from keeping files and documents with a professional records storage provider.
These companies follow best practices in regards to the storage of files and use solutions that ensure the security of information.
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