Most businesses start small. When your business joins the rat race, there are a million things to deal with – finances, market acquisition, customer acquisition, accounts, inventory, office setup, recruitment, etc. The list is a never-ending one. Being a new-age business, you have one more factor to prioritize: managing and protecting customer information, or in short, Data Protection.
Data Protection: What Is it & Why Do SMBs Need It?
By definition, Data Protection refers to the various measures and protocols undertaken to protect an organization’s digital information, processes, and mechanisms from being stolen, misused, corrupted, or compromised.
When information becomes digital, it becomes highly vulnerable to phishing attacks and identity thefts. Cybercriminals are forever trying to get their hands on sensitive customer data or classified business secrets. Unfortunately, if they succeed, they can use the stolen information against your upcoming organization or, worse, sell it to others.
But why SMBs (Small and Midsize Businesses)?
Why not large, well-established organizations? Good question! Here’s the reality: Data protection is a must for any organization, whether big or small. However, in the business scenario, large organizations generally have a standard security framework to safeguard them from unexpected cyberattacks.
Upcoming businesses are more vulnerable to data breaches or theft because they have the same customer information and digital infrastructure that draw hackers to larger enterprises. Besides, hackers don’t take the trouble of using new hacking tools for different companies. They simply copy-paste the malicious code to launch the same type of attack on several companies. Nevertheless, these attacks are just as sophisticated as the ones launched on well-established enterprises.
Since most small-to-medium businesses do not have written policies to restrict or regulate their operations, they are more vulnerable to cyberattacks. It is common for hackers to target small businesses to steal sensitive data, which is nothing short of a treasure trove. Only an impregnable policy and data protection measures can stop hackers from launching attacks. Hence, SMBs should place data protection at the top of their priority list.
Risks of Non-Compliance With Data Protection
Small businesses need to understand why they are susceptible to attacks. Failure to take data protection seriously is an open invitation to all sorts of risks like:
1. Loss of data
The theft of valuable data is the biggest loss caused by inadequate data protection. Hackers waste no time deleting the stolen data, selling it for exorbitant amounts to miscreants or playing havoc with it however they want to. Your customers could face severe consequences when their data goes into the wrong hands. In any case, your organization will have to spend a lot of time and money restoring lost data and facing the ire of your customers.
2. Loss of credibility
Today, customers are very concerned about the safety of their personal information, and no mishap will be tolerated. Even if the data breach doesn’t directly affect them, it will dent their trust in your organization, and they will begin to doubt your capacity to protect data. Customers will not take a second chance when trust and credibility are lost. It is a good enough reason to look for another business that offers them the protection they want.
3. Risk of legal issues
Data protection regulations require organizations to demonstrate they have taken measures to protect the personal data of their customers and employees. People can sue an organization if their data is compromised and stolen. Your organization will not only lose its reputation but will also have to face a barrage of lawsuits and dole out hefty compensations to customers.
4. Decrease in finances
While the loss of reputation may lead to temporary or permanent loss of business revenue, the cost of a data breach will hit you harder with consequences like:
- Compensatory payment for customers affected by the breach.
- Legal fees.
- Payment for investigations into the breach.
- Purchase of new security mechanisms.
- Regulatory penalties.
You may incur more expenses than a proper data security strategy would’ve cost you.
5. Unavailability of operations
Operational downtime is a major risk that many SMBs fail to consider while planning data protection measures. A data breach is a major hurdle to your workflow. It will bring your business to a grinding halt for weeks or months since investigations can take much time. An operational downtime signals the loss of business associations, income, and dissatisfied customers.
In the current digital age, data is like a gold mine. It can be misused for any gain. With the rapid rise of cloud-based storage and online transactions, SMBs have no choice but to go digital to thrive and grow. However, upcoming businesses can suffer irreparable consequences if they fail to protect their sensitive data.
The only solution is to adopt the right data protective measures, no matter the cost. Let’s look at what you can do to fortify your organization’s data.
10 Ways to Implement Effective Data Protection
1. Create detailed, reliable, and water-tight data protection policies for your business, and ensure your entire staff knows what is expected of them.
2. Keep your business surveillance intact and keep a close watch on employees handling data because employee-caused cyber attacks can be unintentional or deliberate.
3. Encrypt your data. It is the best line of defense because encrypted data is almost impossible to decipher and, therefore, useless even if stolen.
4. Educate your staff about cybersecurity basics, rules and regulations, and the measures you have invested in to protect data.
5. Ensure consistent training for recruits and existing staff, updating everyone with the latest measures and policies.
6. Invest only in legitimate, reliable software and data protection measures and opt only for trustworthy data protection partners, like CMIT Solutions in Roanoke.
7. Update your IT paraphernalia and maintain data backups to thwart unexpected breaches and vulnerabilities.
8. Monitor, track, and log your entire network activity. Many companies generate read-only copies that cannot be modified. Consistent monitoring will raise the red flag when intrusions occur, thereby giving you enough time to take action and minimize the impact.
9. As many companies implement a BYOD (Bring Your Device) policy, employees’ gadgets without sufficient data protection are prime targets for cyber attacks. These devices need to be carefully and regularly monitored.
10. Use intelligence-driven automation to check your systems for weak links and chinks in your armor that hackers can use for their benefit.
Make Data Protection Your No.1 Priority
Your business’s data protection should never be compromised, like many other essential business strategies and must-haves. Implementing robust data protection measures is a wise investment that paves the way for long-term success, sound reputation, operational stability, and brand recognition.
Talk to our team at CMIT Solutions, Roanoke, to understand the importance of data protection and implement the best strategies that fuel your growth.
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