As further redundancies are inflicted on the financial sector,
computer forensics firm Kroll Ontrack is warning companies of the
risks of not backing up data on redundant computers and other
hardware.
The Centre for Economics and Business Research has predicted
62,000 job losses in the UK's financial sector alone by the end of
2009, and computer forensics specialists are warning that companies
may not have the necessary resources to adequately back up data
from computers.
With each device requiring anywhere between two and six hours of
work to image contents, the financial sector alone could
collectively require a quarter of a million human hours to complete
the task, said
Kroll.
Though redundancies have been most rife in the financial sector,
the issue of preserving data is one that could affect companies in
other sectors that are highly regulated.
Whilst most companies are not legally required to back up all
data on computers and other hardware devices that are no longer in
use, these companies leave themselves open to data loss and theft
of intellectual property by not doing so.
They may also find themselves unable to meet obligations for
data disclosure that could disadvantage them in future
litigation.
Martin Carey, managing director of Kroll Ontrack, said, "We have
already seen a large number of redundancies in several sectors and
predictions claim those numbers will keep climbing throughout 2009.
With fewer personnel and financial resources available, many
companies are unlikely to have the means to perform the necessary
tasks associated with creating forensic images prior to
disposal."
He said, "In bypassing a process that at other times would be
manageable, companies are leaving themselves open to risks,
including theft of intellectual property and the potential
inability to supply necessary data under legal obligations, which
could have considerable financial implications."