Digital Data Risks
The risks associated with digital data are astronomical, if data is not properly handled and destroyed. Mishandling your data is the one mistake you cannot afford to make, regardless of how large and respected your company may be. A data breach can effectively ruin your brand and cost your company millions of dollars.
When data is mismanaged it can be compromised causing severe repercussions including employee and customer identity theft, fraud and harsh economic and legal penalties. Millions of records are compromised each year.
According to the Ponemon Institute, in 2015 the average cost of a data breach in the United States was $217 per record, with an average cost of $6.5 million per incident.
When data breaches occur corporations inherent a new set of headaches including:
-Data breach notifications
-Legal defense costs
-Regulatory noncompliance penalties
-Revenue loss from decreased customer retention rates
-Millions spent on restoring your brand’s reputation.
The research reveals that the biggest detriment to the bottom line is caused by losing the loyalty of customers and the need to rebuild the company image, reputation and brand in order to regain the public’s trust. Companies find they must spend a substantial amount to salvage what is left of their brand and try to acquire new customers.
The PR necessary to build your brand back to what it once was takes an extraordinary amount of time. Many companies never fully recover. Specific industries are hit harder than others, including pharmaceutical companies, financial services and the healthcare industry, experiencing an even greater customer turnover.
This is why it is vital to choose an IT Asset Partner who puts your brand and security above everything else.