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Definition: Digital Disaster – Suddenly not having access to essential business systems and assets.

If you had a “Digital Disaster”, how long would it take you to service your clients transparently? Most business owners can’t answer this question. If you don’t have a system in place to restore your data and full business functionality, you may never recover.

Example: You pull up to your office building to find it destroyed by fire. You and your ten employees watch the smoke rising. Do you have a TESTED plan in place to assure your business’ continuity and client confidence in your ability to perform?

Running a business these days is tough. Depending on your industry, you might be navigating the ins and outs of federal aid and emergency loans. You are probably monitoring the well-being of your employees and the safety of your clients. And, like most of us, you are pivoting between short-term worries and long-term planning—all in a business climate that is anything but predictable.

In times like these, it is easy to take technology for granted. Even with all the challenges of remote work, we expect our laptops to work perfectly every day. No matter where our business information is stored, we expect it to always be accessible. And if one device or one drive crashes, we expect a backup to be available instantly.

Keep in mind that all it takes is one inadvertent click, one accidental deletion, one password compromise, or one data breach for disaster to strike.  What happens if your data suddenly disappears?  If a disaster struck next week or next month, would your business survive? How long could regular operations last if you lost the critical information needed to keep your company running? Do you have a plan for how you and your employees would respond to different data loss scenarios — say, a data breach, an extended power outage, or simple user error?

These questions seem simplistic in nature, but for most business owners, the answers to those questions are not clear-cut. Do you have answers?  Or are you rolling the dice with your data and potentially future of your business?  Many of us only consider data security when it is too late — after cybercriminals have compromised your information or the inadequacy of your regular data backups becomes evident.

So how can you be more proactive about data protection and have the peace of mind of your ability to quickly and completely recover from an event? Here are a few straightforward questions to help:

  1. What does your current data situation look like?

Working with a trusted IT provider, you can capture a data snapshot that categorizes all assets by importance, by location, and by access needs. Once that’s complete, data backup, storage, and recovery protocols can be implemented to keep your data safe—and identify any threats or vulnerabilities that could negatively affect your business. 

How do you prevent such data disasters? No single security practice or strategy can provide comprehensive protection. That’s why a multi-tiered approach to security is necessary, with various IT solutions like proactive maintenance and monitoring, password management, and data encryption working together to weave a strong security tapestry.

  1. How often is your data backed up, transmitted, and stored? 

In a perfect world, your information should be automatically backed up on a regular basis, securely transmitted from your computers to remote physical and cloud-based locations, and stored in a redundant fashion that mitigates the risk of any individual backup being affected. That is just the first step toward true data security, though. Maintaining reliable access to those backups represents the next step. 

  1. What would your business do first if those data assets were compromised?

Unexpected data loss can deal a devastating blow to businesses big and small. Did you know that one benchmark from the U.S. Small Business Administration states that more than half of small companies impacted by data loss go out of business within six months. So how would your company respond if a data disaster struck? Having a plan in place to understand and react to data loss is important.  Without a professionally managed data backup plan, the consequences of data failure can be devastating. And without a business continuity plan in place to chart a path toward data recovery, even properly backed up information can be hard to access.

  1. What are the main threats to your business data?

Depending on the size of your business and the industry you work in, the answers might differ. Ransomware, phishing, and data breaches can affect anyone, but cyberthreats come at modern companies from every angle, often served up in a mixture of malicious emails, infected web ads, and even illicit phone calls. Stealing your company’s data may be the main goal, but the methods that cybercriminals use to achieve their aims are always changing.

  1. Do you have extra network security tools in place to surround your data with enhanced protection?

A proactive approach to cybersecurity is a must, especially in today’s unpredictable business landscape. Many companies thrive with managed IT services that rely on around-the-clock monitoring and maintenance. This combines traditional tools like firewalls, automated security updates, and anti-malware with more advanced protocols like threat detection, traffic analysis, and incident response. If you aren’t sure about the need for these extra layers of protection for your data, it’s time to talk to an IT provider.

I have some of the best cyber security experts in my professional circles ready to help you assess your weaknesses and to institute systems to protect you going forward. Reach out to me for their contact information.

Remember, the moment you have a business or tax question is the moment you should be calling me.

Please reach out to me without hesitation with any tax, business or

accounting question, and to schedule a consultation.

Tax Laws are complex.

It is very easy to make mistakes that can incur penalties.

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Remember,

“If We Aren’t Working For You, Then You Aren’t Working At Your Best”

Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com

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