The lack of proper data protection safeguards are financially damaging to businesses worldwide.

The costs of inadequate data protection solutions

Stephen Perkins

Insufficient data protection could lead to very damaging and costly outcomes for business IT, according to a recent survey.

The "IT Trust Curve" survey, which polled 3,200 business decision-makers and IT professionals worldwide, found that breaches were the most costly IT incident, SC Magazine reported. On average, these events accounted for annual losses of more than $860,000 per company, which is significantly higher compared with other IT security threats.

Aside from breaches, respondents cited two additional yearly incidents that have been attributed to major financial damage, including data loss and extended down time, which have cost businesses $585,892 and $497,037, respectively. In fact, in the past year, approximately 61 percent of companies noted that they experienced at least one of the aforementioned IT-related security incidents.

The findings highlighted that inadequate data protection safeguards usually led to these occurrences. Additionally, it was found that the lack of trust in technology and IT solutions was another prominent contributing factor.

According to the survey, the main reasons that have prevented organizations from implementing reliable data management solutions were constrained budgets and workloads, as well as issues regarding planning and anticipation.

As reported by SC Magazine, a separate study conducted earlier this year by the National Small Business Association found that 44 percent of small businesses experienced a cyberattack – i.e., malware, spyware or banking trojans – which put the annual average cost of such attacks at roughly $8,700 per company.

Categories: Data Management, Data Protection