Data is commonly referred to as the lifeblood of organizations today. Losing access to this vital asset can damage operations and even threaten a company’s viability. There are many approaches involved in protecting data from threats, and the risks of data loss can manifest in various ways: physical damage to devices, accidental deletion, etc.
In this article, we examine ten common data loss risks that businesses must consider. Understanding them is the first step toward implementing effective data loss prevention strategies. By proactively addressing these vulnerabilities, organizations can assert control over their data security and ensure operational continuity when incidents occur.
1. Hardware Failure
Hardware failures can encompass a range of issues, from hard drive crashes to network hardware faults. For the former, the average lifespan of a hard drive is about three to five years, after which it becomes susceptible to failure. This can lead to the loss of any data stored locally on the device if it hasn’t been backed up.
For instance, the failure of an endpoint terminal might cause locally stored data to be permanently lost without backup. Network hardware failures, especially server outages, can have more severe consequences and potentially render information stored on network equipment permanently inaccessible.
2. Software Failure
Software malfunctions and crashes are also a huge risk because they can potentially corrupt files and can lead to permanent data loss. Businesses today use multiple software solutions to support their operations. Without careful oversight to ensure due maintenance, loss of data spanning days, weeks, or even months could occur in a single crash incident.
This underscores the importance of maintaining up-to-date, non-corrupted backups of both software and company files.
3. Natural Disasters
Fires, floods, power outages, and other major disasters pose a significant risk to data integrity. This mainly applies to data centers, especially if there are no backup locations for main servers. However, smaller-scale disasters can also affect endpoint and network equipment, making data retrieval unlikely. Plus, they can trigger OS and software crashes, which further increase the probability of data loss.
4. Human Error
Here, we are referring to genuine employee mistakes that lead to data loss. Human error is the most common cause of data loss (about 88% according to current research), and it can manifest in various forms. One frequent occurrence is the accidental deletion of files, and if the recycling bin or crash on the computer gets emptied, retrieving the deleted information becomes highly challenging.
Employees may also improperly and ignorantly install or remove programs, which can also result in data loss or overwriting. The risk of this is higher if user-level security settings don’t condone such alterations. ‘Tinier’ actions like spills, even of small amounts of liquid, can permanently disable electronic equipment, and there are also several similarly ‘small’ mistakes that come with huge consequences.
5. Insider Attacks
Besides human error, individuals within an organization can also become malicious and intentionally misuse their privileges and access to the detriment of the company’s data security. This can involve disgruntled employees, contractors, or simply anyone with access to corporate data who has other vested interests that put the organization at risk.
The aim is usually to disrupt business operations and compromise business secrets. The possibility of such risks contributes to why organizations need to take the findings from their data loss prevention (DLP) risk assessment very seriously.
6. Third-party Risk
As organizations increasingly rely on external vendors and partners, the risk of third-party attacks becomes higher. Third parties may engage their own outside vendors, too, further complicating the web of data sharing and expanding the original company’s data exposure beyond its immediate awareness. Evaluating and securing these third-party relationships is crucial for mitigating risk.
7. External Attacks
Of course, there are all forms of malicious attempts to access and compromise an organization’s network and data. Businesses experience a horde of cybercrime incidents per year. These might occur through exploiting vulnerabilities that facilitate unauthorized data access and retrieval.
Viruses and malware can copy, exfiltrate, and delete critical files, while ransomware attacks have been on the rise in recent years. Attackers also carry out credential theft by employing tactics such as phishing campaigns, which enable attackers to gain network access and compromise data integrity.
8. Lost or Non-Returned Assets
According to a study of HR professionals, 71% reported that at least one departing employee did not return company equipment, with remote and hybrid workers 17% more likely to fall into this category. When company assets, especially the ones that are more mobile, such as smartphones and laptops, are lost or not returned, locally stored data may be permanently lost.
Cloud-stored data that are accessible on those devices are also at risk because they may potentially fall into the hands of nefarious actors.
9. Vendor Issues
Besides a cyberattack, other disruptions to the business operations of vendors and partner companies can affect your own organization’s operations and potentially lead to data loss, especially if you rely heavily on third-party-provided or managed software. So, for instance, a vendor facing bankruptcy or facing any kind of business challenge might constitute a risk to your own organization.
10. Digital Obsolescence
With the fast pace of digital advancements these days, many data storage mediums and formats have become outdated and inaccessible using current technology. This necessitates the need to continuously update and back up data, choose file formats with long-term readability, and employ archival software to guarantee accessibility over time. Organizations must be conscious of this.
Conclusion
As the article has made clear, data loss doesn’t always involve a breach, and there are so many factors responsible for data loss besides malicious actors. However, loss of data can still have severe consequences for businesses. This is why cybersecurity executives and business leaders must pay special attention and take proactive steps to mitigate data loss.
