Irish businesses failing to check partner credentials

Pro

Irish small businesses are failing to make adequate checks on suppliers according to research by online back-up provider, Mozy.

The company said that more than 80% of smaller businesses in Ireland and the UK “had never checked if their suppliers had taken adequate precautions to secure their data”. Mozy says that this includes could include financial information, customer data bases and other sources. The research said that as more and more businesses are
handing over data as part of outsourced services, 56% had performed no checks whatsoever on any part of their potential partners’ operations.

“You wouldn’t hire a supplier without requiring at least a month’s notice in the break clause, yet hardly anyone checks to see if their supplier is keeping a backup copy of the computer files related to their business,” said Claire
Galbois-Alcaix, Mozy. “Sixty per cent of companies that suffer a major data loss couldn’t survive for more than 48 hours so it’s vital that, when businesses outsource functions to other companies, they check that they have a
proper backup programme in place. Otherwise they could wake up one morning with a gaping hole in their business.”

Mozy’s research indicates that information management policies are among the least checked credentials for potential suppliers. Only green and corporate social responsibility (CSR) credentials are checked less, with less than 10% of SMEs making any inquiry on these points.

Other areas that were not investigated were financial viability (66.1%) and adherence to industry standards and codes of practice (81.2%).

“In smaller businesses, office managers are often left responsible for dealing with partners and suppliers,” said Galbois-Alcaix. “When things go wrong, it’s often the poor office managers who chase from pillar to post trying to find a solution to plug the gap and appease the rest of the team as they struggle to carry on without the tools they need. Better due diligence before partnering would save everyone the difficulties of unpicking issues such as
responsibilities, disputed agreements and withheld payments.”

Before beginning any partnership, warns Mozy, companies should follow a few fundamental administrative and policy oriented steps to ensure they are protected. A due diligence check list can be downloaded at http://mozy.ie/news/articles

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