Causes And Consequences Of Data Leakage

1725 WordsAug 17, 20157 Pages
Data leakage involves loss of data which invariable leads to loss of knowledge. Knowledge is an important asset for existence as it involves the seamless combination of experiences, specialist insight, standards and plans (Ahmad, Bosua and Scheepers 2014). Thus data is indispensable for development, preserve competitive edge and when it is lost can lead to several consequences. Consequences of data leakage are considerably high since once data is lost it is difficult to regain it back and consequences can last for a lifetime. Consequences of data leakage can be classified as direct or indirect loss (Gordon 2007). Direct loss is easy to quantify and measure such as fines (Phua 2009). However indirect loss is almost impossible to measure and have wider implications like negative publicity (Shabtai, Yuval and Rokach 2012). This will probably lead to loss of revenue and business edge. Indirect loss is one of the reasons for unreported data leakage incidents (Symantec 2014). In 2012, 72% of organisations that experience major data leakage incident closed within 24 months, 93% file for bankruptcy within one year while 50% closed immediately (Gunnarsson 2014). Thus the consequences of data leakage have serious implications as discussed in sub-section 1.6. 1.6 IMPLICATION OF DATA LOSS Implication of data leakage is varied as data have different meaning to different entities. The use of computer systems to store clients’ sensitive data has raised concern due to
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