Risks and Consequences of Not Having a Data Security Policy
Despite the growing number of data breaches, most small and midsized businesses do not have well-established data security policies. The lack of a data security program opens the door to a wide variety of security risks, such as data theft, data tampering and unauthorized access to sensitive information. The impact of a single data breach can be much more devastating and result in huge financial loss. It can also have the following serious consequences:
1. Damage Brand Reputation: A security breach can tarnish your brand’s image and drive away potential customers. Your customers will lose trust and confidence in your company.
2. Disrupt Business Operations: The period of downtime from the moment a security incident occurs, right up to restoration, significantly affects business operations, leading to low productivity, revenue loss and unhappy customers.
3. Legal Implications: Organizations that fall victim to data breaches face serious consequences including fines, legal action and compensation to customers.
4. Loss of Intellectual Property: A data breach not only puts your company and customer information at risk, but you also run the risk of losing patents, blueprints and other certifications.