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July 11th, 2022

ITAD Policy Risks

Data protection

What are the risks associated with not having a sound IT asset disposition policy in place?

What is the cost of a bad ITAD policy, or the lack of an ITAD policy altogether? To organizations operating in the United States and internationally, failure to exercise due diligence with regards to IT asset disposition can have severely crippling costs.

An ITAD policy should be treated with the same care as any existing policies regarding data protection, cybersecurity, or data security since ITAD is concerned with all of these.

Risks to Data Security & Data Privacy

The primary concerns of an ITAD policy should always be around data privacy protection and data security. Poor or lackluster data security can lead to a breach of data privacy, which in turn can result in costly fines and penalties.

For more information on data privacy protection and why it matters, read our previous blog article found here.

Businesses that collect data on European Union residents, for example, can incur massive fines from the General Data Protection Regulation (GDPR) – even if the business is located outside of the EU (e.g. in the United States). Since 2021, GDPR fines have exceeded $1.25 billion, which is at an all-time high and seven times the amount of fines issued in previous years.

Risks to Revenue Potential & Reputation

Data breaches are at an all-time high in severity and frequency, reaching an estimated $4.24 million on average for a data breach in the United States. The cost of a data breach alone can be crippling, but there are also many other opportunity costs and intangible costs as well, such as negative media coverage and social media attention as well as losing reputation and thus business to competitors.

Legal Fines & Penalties

Nearly half of all states in the US have enacted laws protecting data privacy. Jurisdictions in the US and worldwide are clamping down on violations of data security and data privacy and governments are issuing more and more fines and penalties to businesses that fail to exercise due diligence.

A good ITAD policy is therefore essential for reducing the legal consequences of data breaches since it can help an organization remain compliant and to avoid data breaches in the first place.

How to Avoid Having a Bad ITAD Policy

  • Choose to a global ITAD leader: a global leader in ITAD such as Wisetek is necessary to remain compliant. Consult with a reputable ITAD Company like Wisetek and take advantage of our secure and auditable processes for your organization.
  • Ensure all ITAD processes are auditable: destroying sensitive data is critical for organizations, but all of the processes should also be fully auditable and traceable for peace of mind and for accountability. An IT Asset Disposition provider must therefore be willing to provide certificates of data destruction and/or video verification.
  • Seek maximum ROI on redundant IT assets: IT asset disposition can yield excellent value for organizations, especially if IT assets hold value and can be remarketed through a Circular Economy Wisetek operates a full circular economy and a Zero-Landfill Policy to divert all e-waste away from landfills. Our remarketed devices are sold through the Wisetek Market and organizations can receive a portion of the revenue for their redundant IT assets sold there.
  • Process all redundant IT assets securely: Hard Drive Disposal and Data Destruction need to render all data irretrievable. Sensitive data stored on these devices are an easy point of access for any bad actor, especially if they’re discarded recklessly and without any encryption. Ensure that your ITAD policy includes the method of data destruction and also consider logistics (e.g. on-premises vs transporting to another facility for destruction).
  • Secure on-site data destruction: whenever possible, organizations should opt for on-premises data destruction with the help of a reputable ITAD provider such as Wisetek. This eliminates the need to transport hard drives and other media and streamlines the process while also boosting security. We also provide Data Center Services such as Data Center Decommissioning.

Implement a Compliant and Secure ITAD Policy with Wisetek

Wisetek is your trusted partner for ITAD services. As a global leader in ITAD with an international presence, you can rest assured that our team of experts will work closely with key stakeholders within your organization to strengthen your ITAD policy and to remain fully compliant.

For more information, please contact enquiries@wisetekusa.com or visit our website.

You might also be interested in the following articles:

What Is ITAD? – A Guide to IT Asset Disposition

Wisetek’s Remarketing Service: Financial Return for Your Redundant IT Assets

Five Key Steps to Protect Your Business from Data Breaches in the Financial Sector