Why ITAD Matters to Risk Management Professionals
Risk management professionals in the UK are perpetually faced with challenges, new and emerging, with regard to data security and data breaches. Consequently, IT Asset Disposition (ITAD) companies have arisen to meet the growing demand for secure data disposal from organisations in the UK and internationally.
Whereas a risk management professional must be able to competently assess and classify, respond, and monitor risks to an organisation, much of the effort is rightfully placed on cybersecurity threats to existing IT and network infrastructure. The disposal of IT assets, however, poses a significant potential for risk. ITAD can help mitigate costly data breaches from this particular risk vector.
Not only are data breaches occurring more frequently in recent years than ever before, but they’ve also become incredibly costly, on average. ITAD is therefore a crucial part of an organisation’s risk management strategy.
Why are Data Breaches a Major Risk to Organisations?
Modern businesses in the UK rely on vast networks of data centres as well as massive quantities of data held therein and on corporate-owned IT devices. Big data is the new big oil, and it’s critical for ongoing business operations. But this data can be a double-edged sword with the possibility of it being compromised in a data breach.
Data breaches are a major risk to organisations because they tend to be prohibitively costly financially whilst also damaging the reputation of the organisation. Sensitive customer data, for example, can be compromised in a data breach, which subsequently can lead to lost revenue, trust from customers and shareholders, audits, and legal challenges.
The Frequency of Data Breaches in the UK
Nearly 39% of businesses in the UK suffered from a data breach in 2022. Although this figure has slightly decreased since 2020 (46% rate), it’s still quite high. The most common risk vector identified in businesses that have suffered from a data breach was from phishing (83%), which stresses the importance of educational workshops for employees on how to identify phishing. The remainder identified different sources of the data breach, such as malware and ransomware.
Among the various methods used by cyber criminals to cause a data breach, organisations and risk management professionals must consider the risks associated with improper IT Asset Disposal. A single hard drive containing sensitive data can be far more accessible to a criminal and require far less technical aptitude to access its contents.
Consequences of Data Breaches
As mentioned, organisations can suffer significant damage from a data breach. Financially, the average global cost of a data breach in 2022 is estimated to be around $4.35 million (about £3.5 million). For many organisations, the cost of a data breach is crippling.
Several high-profile cases have emerged in recent years of businesses suffering from data breaches and incurring massive penalties for non-compliance with GDPR in the UK. Organisations must therefore display due diligence in order to comply with data protection regulations as well as to mitigate the chances of a data breach from occurring in the first place.
Fines for GDPR Non-Compliance
Organisations in the UK must be well-acquainted with GDPR by now, since its introduction across the EU in 2018 and the subsequent adoption of GDPR UK following Brexit. Businesses using risk-based approaches to data security and data protection stand to benefit from GDPR compliance for two general reasons: to genuinely make efforts to prevent data breaches from occurring, and; to avoid violations by demonstrating due diligence. The two go hand in hand.
Firstly, organisations with good data security and data protection in place can reduce the chances of data breaches from occurring. This could include training employees on how to identify phishing and having a policy for device sharing or for employees working from home, but it should always include a section on IT asset disposal. Data Destruction methods such as Hard Drive Destruction and Hard Drive Shredding ensure that no sensitive data can be retrieved from redundant IT assets.
Secondly, organisations that do suffer from a data breach can avoid the penalties for a GDPR violation if they can adequately demonstrate due diligence. The standard penalties can be up to £8.7 million (or 2% of annual worldwide turnover), so having a clear audit trail can save millions. Data destruction certificates, video verification, and other auditable processes from ITAD companies can provide full transparency and accountability.
Risk Management and ITAD
In order to remain compliant and to keep sensitive data secure, your organisation’s risk management strategy should involve risks from IT asset disposal. All it takes is a single hard drive to fall into the wrong hands and a cybercriminal may be able to access sensitive data and cause a costly data breach, all with little to no technical skill required. This is why a data erasure company and ITAD provider such as Wisetek is necessary to ensure that IT assets are securely processed and that all sensitive data is completely destroyed.
For this reason, risk management professionals within organisations in the UK and especially those operating globally must ensure that the method of data destruction and data disposal is performed by a trustworthy and reputable ITAD provider such as Wisetek. This includes secure data destruction methods such as hard drive shredding, as well as sustainable methods of data disposal such as certified recycling and Corporate Computer Recycling in order to reduce e-waste.
ITAD is also an essential service for organisations with data centres with services such as Data Centre Decommissioning, whereby data centre infrastructure can be disposed of in an orderly and secure manner.
One major benefit for organisations that choose to work with an ITAD company in the UK such as Wisetek is the ability to recoup a significant portion of useable IT assets. Wisetek operates a circular economy model whereby redundant IT assets that can be refurbished are sold through retail platforms such as Wisetek Store, thereby providing organisations with better ROI and reducing e-waste even further.
The Importance of ITAD for a Risk Management Strategy
A robust risk management strategy should always consider the importance of ITAD. Secure and thorough ITAD processes such as hard drive shredding provide organisations with the peace of mind that hard drives are completely destroyed, which can be proven with data destruction certificates as well as video verification for additional auditability.
Moreover, risk management professionals can take advantage of IT solutions from trustworthy ITAD companies which enable them to track and trace IT assets in real-time, produce reports, and much more.
It is also important for risk management professionals to consider the impact of e-waste and how and where their IT assets are disposed of. Non-compliant disposal can result in costly penalties in the UK and in many other jurisdictions as many countries are beginning (or have already) implemented data disposal laws with restrictions on e-waste.
Sustainable and environmentally friendly data disposal methods from ITAD companies such as Wisetek enable organisations to remain compliant with these laws, whilst providing the organisation with the added benefit of helping reduce needless e-waste. This can help satisfy strategic CSR goals for environmental stewardship, for example.
Reduce Organisational Risk by Choosing Wisetek for ITAD
As the risk of data breaches remains high for organisations in the UK and internationally, the need for secure data disposal will likewise remain in high demand. Choose a professional, global-minded ITAD company and work with Wisetek.
From our office in Milton Keynes, our mobile data destruction vehicles can be deployed to business parks in Essex, Greater London, or elsewhere in the UK wherever on-site data destruction is needed.
For more information, please contact enquiries@wisetek.net or visit our website.
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