Managing data risk has long been an important issue for businesses of all sizes, particularly as the deadline for GDPR compliance draws nearer. In other blogs we’ve talked about the importance of compliance and consequences, including financial, of non compliance. Here we consider risks to your brand and reputation.
Impact of data breach on your brand
Data leaks caused by failure to destroy data when required can have a devastating impact on a company’s reputation. Not all leaks are the same – some breaches have a greater impact on brand and reputation because the data is more sensitive. However, most companies agree that their brand and reputation amongst customers and other businesses within their industry is an incredibly important asset.
This is particularly the case in today’s connected world, where consumers are more switched on to peer reviews of products and services. What might seem to your business to be a relatively minor issue could become a far larger problem when magnified by the internet and social media channels, for example.
Frequency of data breach
Security and protecting data are crucial to protect your brand and to ensure customers remain interested in, and loyal to, your business. Data breaches aren’t unusual these days – according to the Ponemon institute, 85% of businesses have been affected by a breach. Even though it is highly likely to occur, many companies aren’t managing their data in responsible ways. Many haven’t considered the significance of keeping old data and won’t have thought about a policy for data destruction, for example.
Likely significance of data breach
What is the likely significance of a breach? According to a report by Forbes Insight on the reputational impact of IT risk, 46% of companies have suffered brand and reputation damage due to breaches in their cyber security. Of course, this could be higher or lower for your business, depending on the industry you operate in. But it is clear that there is potential for significant impact.
Mitigating your risk
Getting rid of unwanted data is one way to mitigate the risk of a harmful breach. Having a process for data wipe and destruction of data that is no longer needed can help you to stay on top of data.
If you’d like to discuss how data destruction can help your business to mitigate reputational risk factors and to learn more about our services in this area, contact us today.