The 20th century has seen incredible advancements in technology and connectivity. This has caused a ripple effect in businesses and the global economy. While there are a ton of milestones to be celebrated, there are also risks that have cropped up.

Hackers are a constant threat for everyone with access to the internet. Large corporations have the most to lose, considering how costly it can be to invest damage control measures in the event of a data breach. 

This is not to say that smaller companies are exempt from hacking. In fact, recent surveys done CPO magazine show that half of all cyberattacks target small businesses. 60% of the affected startups are soon forced to close down. This owes to the huge costs needed to get operations running normally again.

As a business owner, you can agree that you are safer when you know what these impending data risks are and how to manage them. So, to keep you in the know, here are the five most expensive data-related IT risks.

Types of Data-Related IT Risks

IT systems are designed to store company information. Some of this information is considered top secret. Should it land in the wrong people’s hands, it could jeopardize your success. In addition, this could even threaten your existence as a business. 

If your company relies on technology to operate, here are five data related risks you need to watch out for:

Malware

Trojans, viruses, spyware, adware, and ransomware are only a few of the different types of malware used to gain unsolicited access into your data and IT systems. They are used by people who intend to cause malicious damage or possibly to compromise company data. Hackers use such software to access your business website and infect your computer systems.

According to Threatpost, the estimated cost of cleaning up a malware attack ranges anywhere between $1.1 million and $1.67 million.

Phishing Schemes

Staff members inside a company freely share information. Unknowingly, you or a staff member can forfeit personal or sensitive information to the wrong person. If this was done deceitfully using technology, then you can easily become a phishing victim.

Online attackers can masquerade as your bank, your Facebook friend, close relative, or work colleague. This can get you to give them details such as your credit card numbers, login details, and other important data.

According to a survey conducted by Accenture, companies in the US collectively lose up to $11.7 million annually as a result of phishing schemes. What’s more, over half of the companies that are victims of cyber attacks are businesses with less than 250 employees. Small businesses are vulnerable targets. Most don’t have budgets for comprehensive data protection as do large corporations. 

Poorly Secured Data

Someone may forget to follow due protocol when accessing important data within the company’s system. Alternatively, you may be using outdated antivirus software to secure your IT systems. All these are risks that expose you to cyber-attacks and data security risks. 

Going by details availed in the IBM data breach report, human error can cost a company $133 per second.  

Power Outages

Power outages are to blame for the loss of crucial data, especially in a company where the IT systems operate without reliable power back up. With power outages come the loss of internet connectivity, which can bring your business operations to a grinding halt, something that can cost you a significant amount in losses. 

A recent post on Foster Fuels Mission Critical showed that downtime occurring as a result of a power outage could cost a company up to $100,000. A figure which can vary depending on your industry, how long the outage lasts, and the time of day this power outage occurred.

Vandalism

An outsider or an employee can gain unauthorized access to your servers and other IT resources on your business premises. They could steal hardware, damage property, or even malevolently cause a fire. 

According to Chron, computer systems vandalism can cost small businesses up to $867,000 in losses.

Protect Your Business From Data-Related IT Risks

How prepared you are before the occurrence of any data related IT system attacks, determines how much in losses you will spend. Going by the list of risks listed above, it is clear how devastating one risk can be to a company if it happens once, let alone when it occurs numerous times. Take a bold step and protect your company from these data-related IT risks!