The risks associated with organizations and its officers involved in a data loss incident are very high. Every organization that keeps sensitive client data should be concerned about security. Storing data off-site at a facility, like Perpetual Storage, will help mitigate a lawsuit and minimize liability and reputation damage.
Most breaches are the outcome of theft or errors by employees that have access to sensitive information. By storing backups and archival data offsite, the media is out of the hands of employees. This reduces the chances of employee sabotage and errors.
The HIPAA privacy ruling delineates critical aspects in regard to data protection. Compliant backup methodologies are required to ensure confidentiality and security of patient records. An off-site storage vendor can help you remain HIPAA compliant by restricting unauthorized access and being part of your overall contingency plan. A contingency plan is required by organizations that must remain HIPAA compliant.
An off-site storage vendor can help you remain compliant with Sarbanes-Oxley by helping track off-site media rotations and provide reliable reporting on archived records. A major risk of implementing Sarbanes-Oxley storage compliance initiative is physical damage to storage media due to improper storage. A proper off-site storage vendor will know the environmental requirements for each type of media and store your data accordingly.
The cost of a data breach
Often, settlements run in the millions, and even if you prevail in the lawsuit, defense costs can be very high. Penalty for officers of corporations that do not comply with Sarbanes-Oxley regulations could be up to $5 million and 20 years in prison.
Costs incurred include
- Notifying customers
- Processing claims for damages
- Regulatory fines
- Defense costs
- Recovery cost (labor and infrastructure)
- Hiring a PR Firm or crisis consultant (damage control)
- Credit monitoring services (often offered to customers as a goodwill gesture)
However, the lost business is often the largest financial effect of the breach. According to a study by Ponemon, 31% of respondents terminated their relationship with an organization on receiving notification of a breach of data security.
Off-Site data storage
By storing your backup and archival data with an off-site storage facility, you are maintaining best practices and decrease your chances of experiencing a data breach.
Therefore you can save yourself and your organization time, money and embarrassment.
To learn more about Perpetual Storage and its service offering, please download our brochure.