We have previously mentioned the importance of backing up and what your business should be looking for from any backup product. In May of this year, data and how everyone uses it was brought to the forefront with the introduction of GDPR, but it isn't just personal data that we have to be wary of.
Data is collected and used in such a variety of ways that it’s very difficult for any law or industry regulation to fully encompass what and how you should backup – even when there’s expectation around data security, they can never account for your company’s exact circumstances. This month we are going to take a look at the legal implications of not doing so correctly.
In May this year we were introduced to the EU's General Data Protection Regulation aka GDPR. What did it mean? Basically it put every company that deals with sensitive data in the spotlight. All business need to be able to demonstrate methods of data security, retrieval, deletion and backing up. If you are assessed and it are unable to demonstrate that you have measure in place to do this you could be facing a world of pain, both for your firms reputation and for your business finances.
To put it in comparsion, in 2016 penalties for those companies who failed to protect customers data was approximately £2 million, but, with GDPR in place, those fines today would have added up to be £160million!!.
So if you were not backing up and taking care of your data before, you really need to start thinking about it. Even more so when the Information Commissioner’s Office starts investigating and implementing fines for those who don’t comply…
DOES YOUR BUSINESS WORK TO A CONTRACT?
These days most service level agreements/contracts to have penalty clauses, meaning your business could be subject to a reduced level of compensation for work done – or you could even end up paying damages if missing a target leads to adverse financial implications for your customer. Imagine being in the final stages of a project with the dealine approaching and your firms IT network is infiltrated by a virus..what do you do? If you have everything in a secure back up, nothing, simply retrieve it and carry on. You may lose a few hours work, but that is nothing compraed to having to explain to a client that their is nothing
Think about what failing to deliver in line with a contact do to your business? What would it do to the customer to whom your services or products are being delivered?
Having your data backed up would never put you in the the unfortunate position of having to explain to a client you have not met teh agreement that both parties signed up to. Pending the contract, it could also prevent any legal proceedings against your company for failing to meet any contractual agreements.
ARE YOU AN EMPLOYER?
If you have staff, then you probably pay them. These finacial details are personel, if you lose them you’re inviting the complex and swift impact of employment law.
Losing their data could lead to non-payment of wages. The result of which can be financial woes for your employees. Whether or not your staff have signed formal contracts matters very little, the act of having previously paid them means a ‘deemed’ contract has been created – which you stand to break if you lose crucial data.
It would be almost definite that you could easily collate this data again from the indiividuals, but employers who fail to pay their staff are immediately exposed to any financial penalties levied on the the employees i.e. penalties for missed loans, morgtages, bills etc.
Having your data backed up avoids all this.....
The actual cost of not backing up is huge. You can be fined, your business would be in the spotlight for all the wrong reasons and who would do business with a company that has had its data breached?
Something to ponder over is the fact that according to Ponemon Institute’s 2017 Cost of Data Breach Study: United Kingdom, data breaches cost UK organisations an average of £2.48 million..Do you have that much spare cash laid about? Doubtful....
If you have any questions on security of you IT system and how backup of your data can help save you and your compnay, then please get in touch with Systems Integration, Swindon's IT experts and we will show you how to ensure your business and data is protected.