Data Loss Causes and Risks

18 March 2022

Data Loss Causes and Risks

The high level of competition forces companies to ensure the business they offer has the best quality and does not bring risk to customers. Currently, almost every business company requires various IT systems to run their business. The IT system in the company indeed stores a lot of data, both company data and customer personal data. In the digital era, various data in company systems are precious and need to be protected. Any loss or leakage of data from this system will undoubtedly hinder the company’s operations and lead to significant financial losses.

Common Causes of Data Loss

Cyberattackers tend to target or attack the company data to be removed. Although data can be lost as an impact of a cyberattack incident, data loss can also be caused by other causes. These causes can be both intentional and unintentional. Here are some common causes of data loss in companies that you need to know about:

1.      Human error

The most common source of data loss is human error. Employees can make mistakes while doing their duties, such as accidentally deleting data files, spilling drinks on hardware, or other human errors that can destroy company data.

2.      Computer viruses

Viruses or malware can also cause significant data loss incidents, stop system operations instantly, and destroy company data. Hackers can easily destroy company data through a virus that manages to infiltrate.

3.      Data theft

Apart from infiltrating computer viruses, cyberattackers can also perform hacking and access violations into company systems. Unknown outsiders can corrupt your company data by deleting or even taking whatever they want and leaking them.

Risk of Losing Company Data

Many companies are constantly exposed to the risk of cyberattacks and other IT system errors that can destroy company data. If companies want to manage and minimize risk, they must fully understand this issue’s risks. Understand some of the data loss risks for companies below:

1.      Business disruption

Data is the core of running a business, and data loss will harm the company’s functionality. As a result, companies have to dedicate more energy and time to deal with these issues and shift their focus on data recovery before the incident causes other more severe problems.

2.      Damaged reputation

The reputation of companies with data loss problems is often tarnished, and the customers will no longer trust the company. Since data is crucial for everyone, customers will judge the company as reckless and unreliable because of this issue. This risk can also even lead to the closure of the company.

3.      Financial problems

Any data loss will undoubtedly result in company financial problems. Due to the missing data, there is a possibility that the affected company will stop operating and not make a profit within a certain period. At the same time, companies need to use a fair amount of available money to deal with data loss problems and cover other unexpected costs.


It is crucial to understand that data loss poses a significant negative risk to the company, regardless of the cause. Companies such as banks, e-commerce, or other service providers should not lose any vital data. You need to invest more in suitable data protection and recovery technology solutions. Aplikas Servis Pesona, a subsidiary of Phintraco Group engaged in IT Security, is ready to be your choice as the best data security solution provider for your company.


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