26 Jun 2009

Data encryption 'could help firms save'

Businesses could help reduce the effects of data loss on their long-term business goals by investing in data encryption, it has been claimed.

Research from the Ponemon Institute has shown that 69 per cent of the costs accrued due to an incident of data loss are as a result of lost business.

Therefore, safeguarding critical information should always be a priority for firms.

Michael Ginsberg, president and chief executive officer of Echoworx, commented: "Data breaches from loss or theft have become a growing concern with many companies and government organisations. We hear about laptops and USB key losses on an almost daily basis."

Adrian Briscoe, general manager of Ontrack Data Recovery APAC - a division of Kroll Ontrack - recently stated that many companies remain unaware of the true damage that data loss can cause to a firm.

He argued that a fall in employee productivity, delays in the recovery of data and the need to pay staff overtime can all have an impact on long-term profits.