Data Loss - Risks and Impacts
Computer failure is more common than many realise. Last year 25% of 2,500 people surveyed by the Australian Consumers' Association had to repair their computer during the year. About 10% needed to repair or replace their hard drive, where their data is stored. (Choice Magazine, Sept 2002).
Also within Australia, a study conducted by Computer Associates in 2002 produced some alarming statistics on the theft and failure of laptop PC's. A very significant 75% of the respondent companies reported at least one laptop PC stolen in the previous 12 months.
Computer theft and failure are just two of the many risks to business data. Others are viruses, hackers, sabotage, human error, flood, fire and storm. The malicious risks are increasing. As laptop computers and mobile devices become more common place for senior executives, the risks are growing - rarely is this important corporate data backed up often enough, if at all.
The impact on a business of losing its critical data can be devastating. For example, in the USA 93% of businesses that lost their data centre for ten days or more due to a disaster filed for bankruptcy within 1 year. 50% of businesses that found themselves without data management for this same period filed for bankruptcy immediately (National Archives and Records Administration, Washington DC).
In Australia, senior management and company directors can be personally liable for the losses and damages suffered by customers and other affected parties, as a result of not protecting their data. There are clear legal requirements around privacy and directors' corporate responsibilities.
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