Technology is a marvellous thing, always presenting us with new and exciting ways of talking to our clients, processing our daily tasks, storing information and accepting and making payments. But the more heavily we come to rely on it to function efficiently (or at all), the more exposed we become to suffering financial losses if that technology fails. Here are some of the major risks that your tech-dependent business might face.
Like most businesses, you probably store all your client data digitally. This makes it easy to retrieve, update and analyse, but it also places it at risk if your server goes down due to fire or water damage, corrupted software or hardware malfunction. Even with robust backup systems in place, there’s still a risk that you may lose some or all of your client data if you suffer a major incident.
If any part of your business is run online, you could be shut down by a targeted attack. A dedicated denial of service (DDOS) attack floods your system with data, causing it to shut down. A ransomware attack will lock your computers until you pay the cybercriminals to release them. Hackers can find their way into your network and wreak havoc on your systems. There’s also the everyday threat of viruses and malware that you can inadvertently pick up by surfing the internet or clicking on links in emails.
Your internet and phone connections are vital links to your customers, but you have no control over their reliable operation. Service providers can never guarantee 100 percent uptime, and you may find yourself without email, internet, landline or cellphone capability for hours or days at a time. This could be because of hardware or software failure at their end, or something as simple as a road crew accidentally digging through a nearby cable.
Breach of privacy
Because technology enables you to hold so much more information about your customers, it presents a much greater risk that some of that information could fall into the wrong hands. Whether it’s through someone hacking into your network and stealing client data, or an employee accidentally or deliberately sending it out, privacy breaches can leave your business open to legal action by those affected.
If, like many businesses, you rely heavily on technology, consider taking out cyber insurance to protect you from financial hardship due to digital disruption. Just like traditional insurance protects you against the loss as of your physical assets, cyber insurance will help to ensure the loss of your digital assets doesn’t spell disaster for your business.
photo by: Jason Blackeye