When one thinks of data security, the only thing that comes to mind is protecting digital files. However, a business could suffer from breaches even when it comes to hard copies. It could be as simple as someone picking the not-shredded documents out of the trash. Therefore, entrepreneurs should never overlook or cut corners when shredding sensitive documents. Below are six risks associated with not shredding documents before recycling them.

Data breach
One of the most common breaches is a data breach. This could occur when sensitive documents are leaked within or outside a company. If the paperwork falls into the wrong hands, the business and its clients may fall prey to identity theft, fraud, and other forms of crime, including cyber crime.

Legal consequences
Poor document disposal could attract legal consequences. Several industries are subject to data protection regulations that require secure data disposal, including HIPAA or GDPR. Businesses that do not comply with the regulations will have to pay heavy fines and undergo legal action, which could also damage the company’s reputation in the long run.

Customer attrition
A customer who signs up with a business entrusts them with sensitive information. Therefore, if the data is breached due to improper disposal, the user might lose faith in the organization. The lapse in trust will lead to customer attrition, resulting in a massive financial loss for the business.

Espionage
If a business does not shred documents as per regulations, it may risk business espionage. For instance, paperwork that is not shredded may fall into the hands of competitors. Additionally, disgruntled employees could acquire the documents and sell them to the highest bidder. In either case, the business risks exposing its sensitive information and essential business strategies, ultimately hampering its competitiveness and market position.

Recovery costs
A document breach could result in massive data and financial loss. However, the business may also incur recovery costs. For instance, the company might be asked to pay a ransom to retrieve the stolen data. Additionally, the business may have to pay more to improve identity theft protection and implement more robust data security measures.

Downtime
If a third person acquires sensitive data due to the lack of shredding, it could interrupt a business’s operations. Therefore, one might have to pause all production, leading to loss of revenue and employee downtime. These factors will set the business back financially by a margin.