Advanced Data Protection Services

A Management Decision

THE MYTH OF THE "SAFE" SAFE

Many companies are unaware of the existence of off-site storage facilities for their back-up computer data and, thus, invest hundreds or thousands of dollars in "fireproof" file cabinets or safes. Many times the investment is also perceived as a cost-saving measure because companies are unaware of the economics of proper, professional off-site storage.

Unfortunately, "fireproof" file cabinets and safes are designed to protect hard copy, important documents and cash ... not temperature and humidity-sensitive magnetic media. Most of these file cabinets and safes have an interior temperature rating of 350 degrees F. for one to two hours.

This is fine for paper goods which don't burn until they reach a temperature in excess of 400 degrees F. However, this temperature level will cause serious damage to most magnetic media. Even the so- called "media safe" manufacturers will only guarantee their products for an internal temperature rating of 120 to 130 degrees F. for one hour when exposed to an external temperature of 1,700 degrees F.

Obviously, this is not the preferred exposure temperature when you consider that much magnetic media becomes subject to instability, damage and/or loss at a prolonged temperature level of more than 100 degrees F.

It must also be noted that many times two to three years of Advanced Data Protection Services off-site storage and courier service will be less than the cost of a medium size "media safe". Why take the risk? Why be only half safe with a "fireproof" safe or file cabinet?

ON-SITE STORAGE VULNERABILITY

Information stored on film or magnetic media can be lost if temperatures exceed 150F.
Or, if relative humidity exceeds 85%.
Paper records begin to disintegrate at temperatures above 350F.
Fireproof buildings are not "fireproof"... even steel will burn, if subjected to high enough temperatures.
Combustible furniture, floor coverings, construction materials, and supplies will burn quickly, raising temperatures to levels that will destroy magnetic and micro graphic stored information.
Gases produced by combustion, and airborne microscopic particles can affect or destroy magnetic media and data processing equipment.
Sprinkler systems add to the problem rather than provide a solution.
A large enough Halon fire extinguishing system to put out the fire in a DP room and surrounding area is not practical or economically feasible.
Alarm systems are only as good as those responding to it.
Fireproof vaults or safes are UL listed for a maximum of 3500F. They will protect paper for a limited time, but not magnetic or film records.
Employees cannot always be fidelity bonded.
Vault rooms are generally safe from fire, but often the contents are ruined by fire-fighting water.
Magnetic or micro graphic records are subject to damage or erasure if exposed to magnetic fields, airborne chemical vapors, dust or radioactive or nuclear radiation.
Other catastrophes such as power failures, floods, tornadoes, etc., can affect stored data and magnetic media.
Minimal physical security is usually provided, thus exposing vital records to unauthorized handling, theft, vandalism and damage.

VITAL RECORDS

While these vital records represent, in most areas, only a percentage of your company's total records and operating data, they are classified as vital, because they are essential to the continued existence of your company.

If a disaster should occur, these are the records that will be needed to support insurance claims, collect outstanding receivables, pay employees and suppliers, protect the company against unjust claims, comply with government regulations and minimize the interruption of operations.

If even a small percentage of your vital records is destroyed, the cost can be tremendous.

Can you decide now which portion of your vital records you are willing to risk? Obviously, the answer is NONE. 100% of them MUST be protected. The loss of even a small percentage could be catastrophic.

Insurance statistics show that a business site fire occurs every (4) minutes and almost 45% result in non-recoverable financial loss.

Vital records must also be protected against other forms of financial disaster that can occur due to vandalism, fraud, flood, riot, magnetism and industrial espionage.

It is important to recognize and understand that vital records (data processing records) are not insurable in the same sense that property and equipment are. Carefully read "DID YOU KNOW" below.

THE LEGALITIES OF OFF-SITE STORAGE

Protect Your CEO and Directors Against Fines and Prison!

The Foreign Corrupt Practices Act of December 19,1977 - which evolved from the June 4, 1975 Securities Acts Amendments to the Securities Exchange Act of 1934 - was originally designed to "monitor the impact of foreign investments in the US. "and foreign companies doing business in this country. Then the coverage was expanded to cover domestic corporations doing business with foreign companies and was finally expanded to cover all domestic "public corporations " (which pretty well covers any company who has stockholders outside one's immediate family) because if a company was suspected of doing business with a foreign company or of having foreign ownership or directorship, the U.S. government didn't want the domestic corporation to say "sorry, but we lost all the data you requested."

So under the FCPA all Chief Executive Officers and Directors can be held personally liable for the protection of all records, data and vital information; and under current court interpretation of this law, they can be sentenced to jail if found guilty of not protecting their company's records". In fact, individual penalties for top executives and directors can reach $10,000 and five years in prison.

Likewise, the Privacy Act of 1974 provides stiff penalties for management that, through negligence (and that includes failure to provide proper security), allows confidential data or information to be secured by unauthorized personnel. This then, adds "security" as another facet of contingency planning requirements for a complete Disaster Recovery program that management must implement.

DID YOU KNOW?

An interruption in DP operation, whether from fire, flood or fraud, could mean anything from minor damage to financial ruin. These risks call for immediate action.
More than 90% of all companies that depend on data processing, and which experience a serious interruption in their operations, go out of business after the loss.
Interruption of normal business due to DP loss or failure can jeopardize earnings during and after the actual loss.
Standard risk policies are not broad enough to include the range of perils and catastrophes that occur to computer operations.
Most insurance policies pay only for magnetic tapes, disc packs, etc, and for the re-creation of data and programs ... not for the intrinsic value of the information. This coverage assumes that there's a good copy off-site.
Computer insurance coverage does not pay for the loss of data, but rather for the re-creation of the data.
Potential theft of computer data such as trade secrets, client lists, special processes and accounting information, as well as intentional sabotage of media, is extremely prevalent.
Insurance companies will not cover the research and programming costs that are involved in creating new programs.
No consideration is given to the years, and hundreds, perhaps thousands, of man-hours companies spend enhancing a system.
Duplicate tapes stored off-site can appreciably reduce the risk factor and cost of recovery.
Under federal law, corporate officers can be held accountable if a company's assets are not adequately protected. Assets now include computers and information stored on tapes, discs, and other electronic media.
Individual penalties can reach $10,000 and five years in prison.
With an off-site protection program, records must be duplicated and periodically updated.
The period between updates is when vital records are critically vulnerable unless proper on- site storage is available as an interim safety measure.
An off-site records protection program that does not include on-site protective measures is no better than a part-time insurance policy.

Call (818) 566-8200 or email sales@adpsi.net for a quote