What are the Biggest Risks of Operating Without Data Backup?

In the past decade, data has become deeply ingrained in the daily operations of businesses all over the world.

They want to study data to understand what their customers are buying at any given time. They want to gather data from social media channels to assess the engagement power of their latest posts. And they invest in backup services to keep their data secure 24/7.

Or, at least, some of them do.

Research shows that 76 percent of Canadian companies questioned for a Dell survey experienced data disruption in one year alone. The average cost of data loss exceeded an eye-watering $1.1 million (U.S.).

That’s a serious, serious problem for businesses of any size. But startups or smaller companies could suffer devastating consequences as a result of data loss, particularly when targeted by a cyber criminal.

For example, more than 60 percent of small businesses close within six months of being hacked. Even those that stay open may experience strained relationships with clients when word spreads of the cybersecurity breach. The reputational damage may be ongoing, and a red flag for prospective clients.

So, trustworthy data backup is crucial to minimize the risk of losing data, money, and — potentially — your business. But how does it actually help?

In this post, we’ll look at the biggest risks you face when you operate without effective data backup.

5 of the biggest hazards of operating without data backup

According to the Dell survey that discovered 76 percent of companies had experience data disruptions, five of the top reasons named were:

  • hardware issues
  • ransomware
  • software failures
  • loss of power
  • accidental user error

Let’s take a closer look at each of these, and how data backup can help.

Hardware issues

It’s easy to take your hardware’s performance for granted. You buy it, set it up, and assume it’ll keep doing what it’s supposed to until you’re ready to upgrade.

But, sadly, that’s not always the case. Hardware problems can be significant enough to stop your team completing their essential tasks.

This could impact productivity, delivery of products/services, client relationships, and revenue in the long run. Customers who depend on you for their own livelihoods, such as with SaaS, are highly likely to lose patience with frequent disruptions.

And hardware failures can be caused by numerous issues. For example, a fire in your office may destroy all of your equipment and render the premises unsafe for your employees for weeks or months.

Floods, physical damage to hard drives or servers, overheating, and more may all have a similar effect.

That’s why effective data backup can make such a profound difference to your operations.

Your files will be safely stored off-site no matter what happens to your hardware. You’ll be able to retrieve them at any time, on almost any device, for maximum convenience.


Ransomware attacks are frighteningly common. And, sadly, Canada’s cyber defence agency has warned that they’re highly likely to continue disrupting businesses, particularly those considered “critical”.

These cybersecurity attacks lock companies and organizations out of entire systems or specific programs — until they pay the ransom demanded. But there’s no guarantee that the perpetrators will make good on their part of the deal. They could leave systems locked permanently.

This would prevent you accessing critical data, unless it was backed up securely with a reputable vendor. In that case, you may be able to retrieve it and get back to work without paying the ransom.

Software failures

Even the best software may cause disruptions — such as leaving passengers at Heathrow Airport without vital information on their flights and unable to use electronic tickets properly.

Utilizing the best, most trustworthy software your budget allows for could help to reduce the risk of data loss. But backing data up will maximize its safety, just in case of any nasty surprises.

Loss of power

Shutting devices down incorrectly creates the potential for data loss. And a power outage (affecting your business only or the entire area) could corrupt files and/or software without warning.

For example, a loss of power while you’re transferring data from a computer to a hard drive may cost you days or weeks of hard work if you have no backup to rely on. But backing files up in the cloud means you’ll be able to access them once your power is restored.

Accidental user error (or malicious file deletion)

Your employees play a bigger part in keeping your data safe than they may realize. They may delete a file here or there accidentally — or an entire folder representing countless hours of work.

Of course, employees may intend to delete files out of pure malice.

Let’s say a member of your team decides to make things difficult for you (and their former colleagues) by deleting files on their last day.

If you have no backup copies stored in the cloud, this ruthless act could have ongoing repercussions. And you may have no idea who was responsible for the disruption in the first place.

Alternatively, an employee may install malicious software that unleashes a virus throughout your network and severely damages files or programs.

It’s essential that you limit administrative rights: only a few trustworthy individuals within your business should have the ability to install software or make key system changes.

Improve training to increase employee technical knowledge of your hardware and software. This could reduce the likelihood of data loss resulting from user error.

Organizing data backup for your business

Don’t risk your company’s data. Invest in a backup and recovery service from a team you can trust.

GenX Solutions has helped businesses and organizations keep their data safe for years. Our Careforce IT service team is committed to providing the best secure cloud backup process engineering for companies of all sizes, with tailored plans based on a clear understanding of your current backup infrastructure.

Want to find out how we can help you? Get in touch today!

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