{"id":530,"date":"2023-07-26T12:00:56","date_gmt":"2023-07-26T17:00:56","guid":{"rendered":"https:\/\/cmitsolutions.com\/seattle-wa-1039\/?p=530"},"modified":"2025-02-17T16:11:52","modified_gmt":"2025-02-17T22:11:52","slug":"6-best-practices-for-data-backup-in-the-finance-industry","status":"publish","type":"post","link":"https:\/\/cmitsolutions.com\/seattle-wa-1039\/blog\/6-best-practices-for-data-backup-in-the-finance-industry\/","title":{"rendered":"6 Best Practices for Data Backup in the Finance Industry"},"content":{"rendered":"

The finance industry deals with important confidential data every day. Whether you\u2019re a bank, an investment firm or a credit card company, the amount of sensitive information you manage day in, day out is staggering. This is why it\u2019s especially critical for those in the finance industry to be well-prepared in case of disaster, like system outages or data breaches, by implementing best practices for data backup.<\/span><\/p>\n

In this blog, we\u2019ll delve into why data backup<\/a> is paramount, and outline six best practices for data backup in the finance industry.<\/p>\n

[Related: <\/b>IT Procurement for Healthcare: Where To Start<\/b><\/a>]<\/b><\/p>\n

Why Is Data Backup Important for the Finance Industry?<\/span><\/h2>\n

If a system outage or data breach occurs, your finance business could be at risk of losing significant revenue and facing a vast variety of legal penalties and fines.\u00a0<\/span><\/p>\n

And these events happen more often than you may think.\u00a0<\/span><\/p>\n

Financial service providers are the second most-targeted type of business by cybercriminals<\/span><\/a>. Their data can be extremely vulnerable without the right protection and recovery plans \u2014 especially now, as more and more people go online to conduct financial activities.\u00a0<\/span><\/p>\n

However, one of the worst aftereffects of data breaches is arguably the loss of trust between you and your customers.\u00a0<\/span><\/p>\n

Even if a breach doesn\u2019t directly affect them, once a customer realizes your business isn\u2019t implementing a robust data backup strategy alongside best cybersecurity<\/a> practices to follow up from an attack, retaining them as customers will be a struggle.<\/p>\n

Losing months\u2019 or even years\u2019 worth of research, intellectual property, employee data and customer account information could cause your finance company irreparable damage.<\/span><\/p>\n

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Six Best Practices for Data Backup<\/span><\/h2>\n

It doesn\u2019t have to be as overwhelming as it sounds. Follow these guidelines to create a robust data backup strategy or modify your current one to remain in good standing.<\/p>\n

1. Follow the 3-2-1 Rule<\/span><\/h3>\n

When it comes to data backup in the finance industry, it\u2019s best practice to follow something called the \u201c3-2-1 rule.\u201d Basically, the rule calls for keeping three copies of data on two different storage types. Then, you store at least one copy at an off-site location.\u00a0<\/span><\/p>\n

A financial company working with a <\/span>managed IT services<\/span><\/a> provider like <\/span>CMIT Solutions<\/span><\/a> can back up its data <\/span>off-site in the cloud<\/span><\/a> or in another software-as-a-service virtual location. Additionally, storing information in the cloud can make it easier to automate updates and backups that this partner facilitates. No need for you to worry about backup infrastructure.<\/span><\/p>\n

[Related: <\/b>Client Data Protection Checklist for Accountants<\/b><\/a>]<\/b><\/p>\n

2. Document Backup Policies and Procedures and Have a Plan<\/span><\/h3>\n

Establishing a business continuity and disaster recovery plan in case things go awry is critical and vital for your data backup strategy. This helps staff across the board know how to identify and respond to data loss and maintain normal operations as much as possible.\u00a0<\/span><\/p>\n

Here are a few key steps:<\/b><\/p>\n