Data loss to cost quake-affected businesses

Data Loss Set to Cost Earthquate Affected Businesses

As Christchurch Business owners begin to sift through the damage caused by Saturday’s earthquake, many are discovering significant data loss from their computer systems. Early feedback indicates that the shaking to computers, servers and hard-drives has caused data corruption and in some cases total data loss. In many cases, computers have fallen from desks or shelving and are damaged beyond repair. Hard drives spin at approximately 6000 RPM and when they are suddenly jolted to a stop, internal damage is likely to occur.

The cost of data loss can be difficult to accurately measure as it varies from business to business. Chris Sefton, Business Development Manager of Nexus Data Security comments “Many businesses will feel the pain of data loss as they begin to open their doors again,” he said. “For some businesses this will be an inconvenience, but for others it will be a financial catastrophe.”

Typically, businesses are insured for loss or damage to physical hardware; however few companies hold policies that will cover them for the financial effects of losing their computer information. Loss of financial records, customer lists and inventory information are typical issues. For more specialised businesses, such as architects, surveyors and designers the costs may be more immediate as they find they have lost billable work.

“We are fielding a significant number of calls from businesses who need data restored from our offsite backup servers”, says Sefton, “Many of these businesses have not actually lost data, but they cannot access their buildings to get to their computers due to safety reasons. Many businesses will be able to operate from another location if they are simply able to access their important computer data”.

It is expected that there will be a lot of pressure on computer forensic companies as they try to recover data from damaged hard drives. Business owners that need this service should check with their insurance provider. Forensic recovery can be costly, but it may be covered under some policies.

“We are a data backup provider, and do not restore data from damaged hardware. We are getting a lot of calls like these and are having to turn them away.” says Sefton, “We can only help them if we already have a backup of their data. This certainly does highlight the need to be prepared with a reliable, offsite computer backup.” Those needing data recovered from damaged computers should consult a reputable computer repairer for a referral to a computer forensics provider.

ENDS