British IT experts are embracing a “Titanic mentality,” as noted in a study, being unable to anticipate the forthcoming “iceberg” related to their inadequate data restoration solutions.
Only 54% displayed confidence in the retrieval of their data and the reduction of downtime in the event of a future disaster — despite 78% of the professionals surveyed indicating that their organization encountered data loss at some point in the past year, be it due to system breakdown, human oversight, or a cyber strike.
Conducted in July 2024, Assurestor, a provider of recoverability solutions, surveyed more than 250 senior-level IT professionals, including CIOs and CTOs, in organizations across the UK. Those who encountered data loss were asked about its consequences on their organization, with 35% highlighting financial loss as the most significant ramification.
The study aligns with a June report from Splunk unveiling that the most prominent corporations globally experienced approximately $9,000 in losses for each minute of system failure or service deterioration. Factors contributing to this loss involved direct revenue decline, reduced shareholder value, stagnant output, and reputational harm.
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The two other frequently cited repercussions of data loss in the Assurestor report were ramifications on customer service (30%) and operational standstills (28%). Alarmingly, 16% of participants mentioned that a substantial data loss occurrence could potentially prompt the closure of their business.
The growth in delicate data has led to an increase in data breaches among businesses. A report from Perforce in August disclosed that 74% of organizations managing sensitive data upped the volume maintained in insecure settings such as development, testing, analytics, and AI/ML over the past year.
The absence of regular data recovery process testing among UK IT professionals
Despite recognizing the well-known and dreaded risks, IT leaders in the UK seem unprepared to take the essential steps to mitigate them, a course that could include conducting data recovery tests. Merely 5% conduct monthly tests, while 20% test once a year or even less, as per the Assurestor report. Among those who test more frequently, 60% verify the complete recoverability and usability of their company’s data only once every six months.
“We are observing what we term a ‘Titanic mentality’ in terms of data recovery,” Stephen Young, the executive director at Assurestor, expressed in a press release. “Organizations assume they are unsinkable — until they aren’t.”
He referred to the incidents involving CrowdStrike and the British Library as examples of how significant downtime could cost businesses and the dangers of inadequate technology. The former caused Fortune 500 companies at least $5.4 billion in direct financial damages, while “legacy infrastructure played a part in exacerbating the consequences” of the latter.
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Young added: “It is worrisome that just over half of the participants believe their data is retrievable; this percentage should ideally be much closer to 100%. Otherwise, how can you confidently report your ‘recovery readiness’ to the Board and senior stakeholders?
“Trust stems from recognizing a company’s actual requirements, without compromising on expenses — and thorough, repeated testing.”
The primary reason behind the lack of planning for data recoverability? Lack of priority from others
The Assurestor report pinpoints a fundamental cause why firms are not prioritizing their data recovery strategies despite being aware of the dangers: insufficient internal backing.
Executives are simply not allocating enough resources to their IT teams, with 29% of participants highlighting a lack of financial input, and 39% indicating a deficit in in-house expertise. Another 28% identified a deficiency in senior endorsement in this sector.
“A shortage of financial support from the top can foster a sense of complacency, or even indifference,” noted the Assurestor experts. “If those responsible for safeguarding the business in case of a data mishap, assault, or human glitch do not perceive that threats are taken earnestly enough, or understood, their strategy and attitude could reflect this.”
5 suggestions to fortify your data recovery process
Assurestor proposed several suggestions to aid organizations in evading the severe repercussions of neglecting to augment their data recovery procedure:
- Ensure a recovery environment is established that allows for regular recovery tests without disrupting daily activities.
- Designate a chief recovery officer responsible for ensuring adequate data recovery procedures and technologies are in place, and reporting on the business’ recovery status.
- Reevaluate the company’s perception of a “disaster” to encompass cyber attacks to ensure a contingency plan is prioritized.
- Evaluate data recovery strategies and backup technologies monthly or as frequently as feasible, and adapt them accordingly.
- Estimate the cost of downtime for the business and establish an appropriate recovery plan that offers sufficient protection.
“Absolute dependability in your systems and data recovery is indispensable,” emphasized Young. “Even the slightest hint of doubt opens up the door to challenges. This uncertainty needs to be acknowledged and addressed before catastrophe strikes.”
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