Cyberattacks can severely disrupt business operations, leading to significant financial losses. Data restoration, the process of recovering lost or compromised data, plays a vital role in minimizing these losses by ensuring that businesses can quickly resume operations after an incident. Effective data restoration is especially crucial in reducing business interruption (BI) claims, which can be a major cost driver for both companies and their insurers.
Modern data restoration methods not only accelerate recovery but also drastically mitigate BI losses, highlighting the critical intersection of data restoration, incident response (IR), and cyber insurance. We broke down these concepts in our most recent masterclass led by Heath Renfrow, co-founder of Fenix24.
Watch the Masterclass Recording here (Specialist and Plus Members Only).
What is Data Restoration, and Where Does it Fit into the IR process?
Data restoration involves recovering lost or compromised data after a cyberattack or system failure, playing a crucial role in the Incident Response (IR) process. It is essential for minimizing business interruption (BI) and ensuring swift recovery. Traditional restoration methods, often reliant on in-house IT or Managed Service Providers (MSPs), tend to be reactive and slow, prolonging downtime and increasing costs.
Advanced restoration techniques, however, use virtual environments and automation tools to restore systems quickly and efficiently, reducing downtime. These methods are proactive and focus on restoring systems to their pre-attack state. Data restoration is critical in the IR process because it enables businesses to resume operations faster, mitigating financial losses. Cyber insurance policies increasingly incorporate professional data restoration to ensure effective recovery.
Good Data Restoration Reduces BI Losses By 50%
The benefits of professional data restoration in the context of cyber insurance are crucial, particularly in minimizing business interruption (BI) claims. Rapid system restoration by specialized teams significantly reduces downtime and financial losses, as they can restore critical systems faster than internal IT teams. Professional restorers collaborate closely with forensic accountants and data forensic firms, ensuring seamless containment and recovery while preventing further damage. Tailored restoration plans further enhance efficiency by prioritizing the most critical systems, and aligning recovery efforts with business needs.
Data Restoration Case Study
In a real-life scenario, a medical device manufacturer was hit by a ransomware attack that encrypted 550 virtual servers and critical software. Even after paying the ransom, the decryption tool failed, leaving the company on the verge of layoffs. A rapid response team intervened after a scoping call and quickly identified the appropriate restoration approach, despite the internal IT team’s initial confidence. Within 21 days, the company was fully restored, saving 2,000 jobs and allowing manufacturing to resume without further disruption.
In conclusion, Restoration goes beyond simply getting systems back online; it’s about minimizing business interruption (BI) losses for both insurers and policyholders. Investing in fast, expert-led restoration services can reduce BI losses by up to 50%, making it a crucial aspect of risk management. It’s also important to note that compliance does not equate to security, and regular client education and scoping calls are essential to ensure that both parties understand the scope and requirements of effective restoration strategies.
