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Keeping your data safe

Your business data is one of your most important assets. The information you store includes your customer database, marketing materials, financial records, staff details and more. How would your business cope if you lost all this information?

Data security is the process of keeping safe your important data. It is key to the success of your company.

This briefing covers:

  1. Assessing the risks you face.
  2. Storing and using data safely.
  3. Making contingency plans.

1 The data you hold

The amount of time and money you spend safeguarding your data will depend on how vital it is to your business and how likely you are to suffer data loss. To assess the risks, you need to know what data you store and use in your company.

1.1 Establish what data you store in your business.

  • Many businesses store information across multiple systems and in different locations.
  • Think about data held centrally as well as information stored on staff computers, disks, tapes, memory sticks and online.
  • Build up the most comprehensive list of business possible.

    Make sure you record where data is stored.

  • Remember to include information stored outside of your business.

    For instance, your website is probably held on a server owned by a third-party hosting company.

1.2 Examine how valuable this data is.

  • Mission critical data is vital.

    If lost, it can seriously damage your business. You will want to give most protection to this data.

  • Customer records and accounting data can be mission critical.
  • Mission critical data may also include employee records and valuable market intelligence.
  • Some data is less important.

    For example, losing your email archive may be inconvenient, but will not seriously threaten the health of your business.

1.3 Look at how you use this data.

  • Consider who has access to the data and how often it is used or changed.
  • Some data may be in constant use by many employees.

    For instance, your customer database.

  • Other data, like staff records, may be accessed infrequently by only one or two employees.
  • Think about how data is transferred.

    Is it sent by email, or put onto disks and posted?

1.4 Use all this information to build up a comprehensive list of data stored in your business.

  • For each type of data, you should know where it is stored, how often it is accessed, and who uses it.
  • You can use this list to pinpoint risks in the way your business handles data.

2 The dangers

There are many threats to your business data.

2.1 You could lose or damage your data through human error.

  • It is easy to change or erase data accidentally.
  • For instance, a staff member could delete a crucial list of customers by mistake.
  • Look for software with undo and rollback functions to minimise the risks posed by human error.

2.2 There are physical threats too.

  • Failed hardware, like a broken hard disk, can result in the loss of crucial files.
  • A natural disaster could destroy the server holding key business information.

    For example, a fire or flood in your business premises.

  • Theft of company computers or laptops can result in data falling into the wrong hands, or being lost forever.

2.3 You could suffer a data breach online.

  • Hackers try to break into computers across the Internet.

    This is a serious risk, particularly for companies that hold sensitive data.

  • Some computer viruses erase files.

    These usually infect company systems through the Internet, via a downloaded file or email.

  • Other malware (malicious software) like trojans and spyware may read your data and transmit it across the Internet, or wipe it completely.
  • Make sure you follow good online security practice and use security software.

2.4 You could be a victim of malicious action by an individual.

  • Anyone with access to your data could copy or delete it.
  • For instance, a disgruntled employee could sell your customer database to a competitor.
  • Access control is a key way of reducing this risk. See 4.

3 Data storage

The way you store your data is key to keeping it safe.

3.1 Storing data centrally is generally most secure.

  • You should consider storing your mission critical data on a central server.
  • Having data in only a single place reduces the risk of theft.

    For instance, the risk of data being stolen is reduced because it is not stored on employee laptops.

  • However, having data in one place means there is a single point of failure.

    If your server breaks, your data could be inaccessible.

  • To guard against this, consider mirroring the information elsewhere.

    Your IT supplier can help with this. Always keep backups (see 5).

  • You will need to provide a secure way for employees to access the data (see 4).

3.2 In general, the risk of data loss increases the more places the data is kept.

  • Discourage employees from saving important data on their own computers.

    A single laptop theft or virus infection could be disastrous.

  • Instead, provide each employee with a personal area on your server.

3.3 Be particularly aware of the risks posed by removable media.

  • It is easy to lose a CD or memory stick.
  • Instead of burning data to a CD and posting it, you can securely transfer data across the Internet.

    Ask your IT supplier or web host to set this up for you.

  • A disgruntled employee could transfer your entire customer database to a memory stick in seconds.

    You can disable the USB ports on your computers to make this impossible.

3.4 Wherever your data is stored, always take some key precautions to protect it.

  • If data is kept on a system connected to the Internet, use both software and hardware firewalls to keep out hackers.
  • Look for software products with Common Criteria Certification, which proves they have been rigorously tested for vulnerability to hackers.
  • Back up your data regularly (see 5).
  • Install up-to-date security software on all your computers and servers and scan regularly for viruses.
  • Consider using encryption to protect your most important information.

    This scrambles the stored data, and is much more secure than simple password protection. Recent versions of Windows have encryption built in.

  • Remember physical security.

    Keep your servers in a secure room and use locks to keep laptops and desktop PCs secure.

  • Consider disposal carefully.

    Data stored on the hard drive of the printer has to be erased before the device leaves the office for disposal and recycling.

4 Data use

4.1 Only give each of your employees access to the data they need.

  • If your staff cannot access data, they cannot change or delete it - whether deliberately or by mistake.
  • Make sure every employee has access to the data they need to do their job.

4.2 Use secure logins to provide different access levels.

  • Give each member of staff their own username and password.
  • Microsoft Windows allows you to grant different access levels to particular groups or individual users.
  • Make sure other business software allows you to set up staff logins too.
  • Can your customer relationship management (CRM) software allow different users different levels of access?
  • Mobile access can be a headache.

    Consider providing a virtual private network (VPN) so employees can securely connect to your company systems from outside the business.

4.3 Ensure everyone in your business understands the importance of data protection.

  • Systems and processes alone are not enough to keep data secure.
  • Your staff have access to the data, so they must take responsibility for it (see 6).

4.4 Have clearly-defined methods for transferring data.

  • Data is vulnerable when in transit, whether being sent across the Internet or by post on a disk.
  • Always encrypt important data before tranferring it.
  • Enable security protocols such as SSL and IPSec when tranferring data on the Internet.
  • If you are transferring data outside your business, make sure you are in compliance with data protection legislation, and that the recipient understands how they can use it.
  • Make sure additional copies of data are only held for as long as necessary - whether inside or outside your company.

4.5 When deciding how data should be accessed, you may need to strike a balance between security and convenience.

  • Adding too many security measures can make it harder for employees to do their jobs, and encourage them to find shortcuts.
  • For instance, employees with multiple passwords for multiple systems may write them down, ultimately reducing the security of those systems.
  • To achieve a good balance, test out different security options and ask employees what they think.

Your legal obligations

Most personal information your business holds is subject to the Data Protection Act 1998.

It is important you comply with the Data Protection Act.

  • The Act aims to ensure personal privacy, by giving individuals rights with regards to the information organisations store about them.
  • If you hold personal information, you will probably have to register with the Information Commissioner's Office.
  • There are some exceptions to this, but registration is straightforward.
  • Even if you are exempt from registration, you must comply with eight key principles of data protection.
  • Visit the Information Commissioner's Office website.
  • Search for advice on the Business Link website.

You can get more information about the Data Protection Act.

5 Backing up data

5.1 Set up an effective backup procedure, so you can recover your data if the worst happens.

  • Backups are extra copies of data.

    You can use them to restore data if your working copy is lost.

  • Store your backups off-site, away from the main copy of your data.
  • Remember to keep backups secure too.

    Encrypt data, and store disks or tapes somewhere safe.

  • Make sure you test your backup procedures regularly, so you know how to recover data.

5.2 Take backups regularly.

  • If your critical business data changes frequently, aim to back it up daily.
  • Run backups in rotation.

    For instance, if your run daily backups, you might keep seven disks containing backups for the previous seven days. This allows you to roll back to a particular point in time.

  • Rather than backing up all your data each day, you can just back up data which has changed.

    This uses less storage space, and is quicker.

  • Backup software can schedule and manage backups automatically.

5.3 Choose a backup method that suits you.

  • You can back up your data to removable disks or tapes, like a CD-ROM, DVD or portable hard drive.
  • Online backup services let you back up data over the Internet.

    Your data is stored on a server in another location. Online backup services are usually charged monthly, and include BC PC backup and MozyPro.

  • You can use a RAID system to mirror your data onto several disks.

    This allows you to continue working in the event of disk failure, but you need to store offsite backups too.

  • You can carry out a basic backup manually.

    Just copy your files onto a CD, DVD or portable hard drive.

  • Microsoft Windows has backup functions built in.

    This is adequate for basic backups.

  • For more complex scheduled backups you may need to purchase backup software.

    Your IT supplier should be able to help.

5.4 Backups are very important, so ensure someone in your business has responsibility for them.

  • Give one person the task of ensuring your backup procedures are functioning properly.
  • Make sure they report to your regularly, and test restoring from the backups at least once a quarter.
  • Ensure they also have a deputy, who can cover for absences.

6 Effective communication

6.1 Communicate the policies and procedures which cover storing and using data in your business.

  • Your employees will have to work within the guidelines you set them, so involve them in the creation of these procedures.
  • Run practical workshops explaining why data security is important.
  • Demonstrate how procedures should be implemented.
  • Train employees in the basics of data protection law.
  • If possible, make data security policies and guidelines available to all staff via the company intranet.
  • Seek feedback on how well the guidelines work in practice, and review them regularly.
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