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By: Framework IT on September 14th, 2020

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3 Startling Statistics About Data Loss and Recovery

Managed IT Services

 

Two of the scariest words in modern business are “data loss.” Despite the fear this phrase invokes, many businesses continue to operate under the assumption they are invincible. That’s because most business owners and IT specialists don’t understand the true cost of a data breach or disaster. Instead of learning the hard way, read about the truth behind disaster recovery. 

 

 

60% of Businesses Will Close Within 6 Months 

 

According to the National Cybersecurity Alliance, 60 percent of small businesses that experience significant data loss are forced to close within six months of the disaster. An incredible 72 percent fall by the wayside within two years.

 

93% of Affected Businesses File for Bankruptcy

 

The results from a similar study conducted by the British Chambers of Commerce shows that 93 percent of businesses that suffer extended data loss — longer than 10 days — file for bankruptcy within a year. Fifty percent file for bankruptcy immediately.

 

Average Cost of Data Loss is Nearly $50,000

 

From a financial perspective, security breaches are the most expensive. According to Security Magazine, the average cost of a data breach for a small business is $36,000 to $50,000. This amount may even be the total value of some small businesses. The bottom line is, small and mid-sized businesses cannot afford breaches and recovery may not be possible.

How to Protect Your Business from Data Loss – Have a Plan

In addition to the financial expenses related to data loss, a considerable amount of time and energy must be put into recovering your information. Data loss must be dealt with swiftly to avoid losing business, but without a plan in place, it can take much longer. By thinking ahead and protecting your business with a disaster recovery solution, you can avoid wasting unnecessary time, money, and energy.

Disaster recovery is about more than recovering data; it’s about protecting your business's livelihood. With these tools in hand, you can easily combat potential disasters. At Framework IT, we protect businesses through exceptional disaster recovery solutions. For specific information on how to reduce the threat of disaster recovery for your company, contact us today!