A data risk is the potential for a business loss related to the governance, management and security of data. The following are illustrative examples.
Vendor Lock-inIn a dispute with a software-as-a-service vendor they hold your data as a bargaining chip and prevent you from accessing it.
A data storage device fails resulting in the loss of transactional data.Data becomes corrupted due to data rot causing business processes to fail.
Data IntegrationAn integration process fails. As a result, customers can't view their most recent transactions on your website resulting in a flood of complaints.
A firm recklessly accumulates dark data that becomes disorganized and costly to manage. A market data feed goes down in the middle of market hours causing disruptions of trading operations at a bank.A firm accidentally disposes of equipment without properly wiping and degaussing it.
A firm accidentally provides customer details to a third party, violating local regulations.A firm losses its entire customer database to an advanced persistent threat. The database is sold to numerous entities exposing your customers to risks and stress. This results in liability, reputational damage and regulatory investigations.Next read: Types of Data Loss
Common types of data risk:
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