For individuals, data loss can be a major inconvenience. Nothing feels worse than seeing that blue screen of death and suddenly realizing you’ve just lost 3 years of your life in an instant. But although personal data loss can be emotionally devastating for a single individual, corporate data loss carries much more serious consequences that might end the careers of dozens or even hundreds of employees.
Take the example of the financial company Pershing LLC. On September 29 2005, the company had allegedly lost a laptop containing the highly sensitive records of over 36,000 people. Some of this information included names, social security numbers, bank account balances, and more.
Although the laptop itself was fairly inexpensive, the incident caused some very expensive legal hurdles could have potentially destroyed the company.
Of course, this is just one of many thousands of examples. It could happen to Pershing just as easily as it can happen to your company.
A recent study conducted by the Ponemon institute surveyed 128 different laptop theft incidents which happened across 29 companies. After adding up the laptop replacement, detection & escalation, forensics & investigation, data breach, intellectual property loss, productivity and legal costs, the report found that the average cost per laptop theft incident was roughly $50,000.
Of course, it’s important to note that a few exceptionally expensive incidents had an impact on the overall average. But still, this should illustrate the importance of having an effective disaster recovery and business continuity plan in place.
Another interesting finding was that managers had an average cost-per-theft that was about double that of executives. This might have to do with the fact that executives are less likely to carry things like customer databases on their laptops.
When looking to implement or upgrade your disaster recovery plan, it can sometimes seem difficult for IT managers to effectively quantify the ROI of investing in a system that the company will hopefully never need to use.
It’s understandable. Prevention will never be as compelling as a cure. But this doesn’t have to be the case.
If your company’s internal decision makers have been dragging their feet when it comes to preparing for the unexpected, this report should certainly open their eyes to the importance of effective data protection.
Storagepipe Solutions provide server backup and email archiving solutions that help companies improve their IT security in case of disaster.