The data a business holds is without a doubt one of the most valuable assets it holds. If that data is mismanaged, however, it can quickly become a source of risk rather than opportunity. Inadequate data management can have multiple consequences, from regulatory fines, loss of trust, and internal inefficiencies. Any one of these issues can be enough to sink a business in the short or long term, and while most businesses are aware of how much data matters, it would surprise many how few businesses have active systems in place to prevent mismanagement issues.
Today’s business landscape demands more than simply a scattered collection of documents and will-this-do compliance policies. Whether you’re storing customer details, handling legal documents, or working with sensitive contracts, the stakes really have never been higher.
Small errors, large consequences
We’re all aware of how costly data breaches can be – it’s been an entire genre of business story in recent years. But things don’t even need to go that far for a business to experience the fallout from data mismanagement. Something as simple as misplacing key files, a failure to track and document changes, or filing client records in the wrong place can slow operations to a crawl, and raise red flags during audits.’
‘
Mistakes like these are a lot more common than you might imagine, especially in growing businesses that haven’t got around to formalizing their systems. The resulting cost can be hours of lost productivity, damage to relationships, and in some cases, real legal consequences.
Secure infrastructure matters whoever you are
Security frameworks such as Fedramp (FEDeral Risk and Authorisation Management Program) are designed to ensure that cloud-based tools were up to muster with regard to stringent data protection standards. These standards are drawn up with US Federal Agencies and their contractors in mind, but the principles behind them apply to all businesses. Choosing tools to align with these standards can make a major difference where data safeguarding is concerned, and will demonstrate compliance to clients, partners or regulators.
The right platforms offer businesses a way to manage and review large volumes of data in a secure manner, helping teams stay on top of legal requirements while staying efficient.
Prevention is the best cure
We’ll assume that you’re not reading this for notes on how to handle a live crisis, because if you are it’s too late and this is the wrong place. So here’s the reality: the most effective way to handle a data crisis is to prevent it from happening at all. That means investing now in proper file organization, secure cloud platforms, access controls and staff training. It means being awake to the warning signs – duplicated records, unclear paper trails, and inconsistent storage – and nipping them in the bud. Seriously, putting the right systems in place now will cost exponentially less than dealing with the fallout of a mistake after it happens.
It cannot be overemphasized how important it is to manage your internal data well, and to be able to show that you do. Aside from its part in the smooth running of your own business, it is a beacon to any client or partner you expect to work with that you will handle their data with the same seriousness. This is how you show the world you’re building a business that’s in it for the long haul.
