Disastrous consequences of lack of data security

Disastrous consequences of lack of data security

Data security is imperative for any business, and more and more companies need tools and strategies to protect their sensitive data. Computer attacks are becoming more and more sophisticated, so that those responsible for information security are always alert and have a proactive attitude to security. When data security fails, the consequences for a company can be disastrous, leading to its end. In today’s article, we talked about the main consequences of lack of data security!

Data exposure

When the company doesn’t have an effective data security policy, one of the worst consequences is the exposure of data. If a company doesn’t adopt encryption or masking rules and if it doesn’t protect its devices through passwords, the likelihood of confidential data being exposed is much greater. And when this data leak occurs, the company loses credibility, and may even fail.

Heavy fines

Failures in data security can lead to the company being forced to pay large fines. Above all, with the entry into force of the GDPR, companies need to be very careful about how they manage the most sensitive data. The new GDPR focuses heavily on enforcement and penalties, through the application of high fines for offenders. In cases of minor breaches it may reach 10 million euros or 2% of the global turnover of the group in which the company operates and in the worst cases may reach 20 million euros or 4% of world turnover.

Damage to the company image

When a company leaves their confidential data exposed, their credibility with customers and suppliers is compromised. No company and no customer likes to deal with an organization that is not able to guarantee the privacy of the information. These image damages can compromise the survival of the business.

Repetition of work

When there is no guarantee of information protection, IT teams are very likely to be forced to do the same tasks over and over to recover data that has been lost. It is essential that the company has well-defined processes for the management and processing of confidential data. The constant repetition of tasks can lead to the demotivation of the employees and the consequent increase of the turnover rate in the company.

Threats to data security are getting bigger and more sophisticated, making it harder to ensure data security in the business. Protecting the information your company generates on a daily basis is essential for business success and at this stage when the new general data protection regulation has already come into force, it is even more important to work towards securing company and its stakeholders.