Companies that proactively manage their data can achieve multiple positive business outcomes such as making optimal use of their storage infrastructure while simultaneously servicing next-generation workloads such as GenAI. Those that fail to act run the risk of spiralling costs in addition to large exposure in the case of a data breach which, in and of itself, could lead to insolvency pursuant to penalties, lawsuits, and reputational damage.

Ensuring data is organised, accessible, and protected is critical to a company’s survival. Failing to do so jeopardises business operations and could lead to severe regulatory and legal repercussions.

Consequences of Poor Data Management

The recent MediSecure breach in 2024 is a stark warning. With 12.9 million Australians affected, the fallout was swift and devastating. Within months, the company was forced into voluntary administration.

Cyber breaches are not an isolated event—the Office of the Australian Information Commissioner (OAIC) reported 527 data breach notifications from January to June 2024 alone, with cybersecurity incidents leading to data exfiltration reported in 38 percent of those cases. As a result, financial organisations  in particular, (including banks, superannuation funds, and insurance companies), are facing growing scrutiny in relation to their cyber risk management standards and practices which extend to any third parties managing information assets on behalf of the institution.

The Australian Prudential Regulation Authority (APRA) has introduced stricter cybersecurity standards, and failure to comply comes with severe penalties, including potential jail time for executives. Under these new standards rules, breaches must be reported within 72 hours, and in some cases, within 24 hours if critical operations are affected. Companies that fall short risk financial penalties and irreparable reputational damage.

Real-World Fallout: A Crime Scene in Your Office

Many businesses fail to realise that a serious data breach can result in their operations being treated as a crime scene wherein law enforcement and regulatory authorities may step in, securing the business much like they would a physical crime site. Designation of the site as a crime scene can mean locked-down servers, restricted access to critical systems, and an operational freeze that can bring even the largest enterprises to a grinding halt. Without a structured and well-managed data framework, recovering from such an event can be nearly impossible..

The Vulnerability of Unstructured Data

One of the biggest risks enterprises face is the proliferation of unstructured data, which is ingested via emails, documents, social media posts, videos, and other business files. Unstructured data can account for between 80 and 90 percent of a company’s data holdings, and often sits on servers with no obvious business related purpose.

For example, a CEO might send an email with an attached financial report to all 300 staff in an organisation, 50 percent of whom save the attached report for future reference. That same file stored by the recipients is now duplicated 150 times. This can happen with hundreds of files, images and documents which can lead to silos of data, with little or no organisation, and can lead to a data management emergency.

APRA’s upcoming CPS230 standard, effective 1 July 2025, mandates that financial institutions must not only protect and manage their data but also have the capability to operate from a clean, separate system post-attack.

The CPS230 requirement aligns with the existing CPS234 framework, which calls for clear security accountability at every level of an organisation extending to third parties who might be managing data assets. However, meeting these stringent standards will be an uphill battle without proper data management practices.

The Path Forward: Management, Secure, and Optimise

Organisations must implement a robust data management strategy to have clear insights on their data, safeguard against cyber threats, and ensure compliance with evolving regulations. Advanced data management platforms can provide critical support by:

• Assessing and categorising unstructured data to identify and protect high-value assets.
• Eliminating redundant, obsolete, or trivial data to streamline operations and reduce attack surfaces.
• Enhancing data visibility to improve governance and facilitate rapid response in case of a breach.

By proactively organising and securing their data, businesses can ensure that critical information is readily available when needed, reducing downtime and enabling faster recovery from downtime caused by cyber-attacks or human errors.

In an era where AI and LLMs thrive on curated and relevant data, proper management also positions companies to leverage emerging technologies effectively. Such advanced technologies simply won’t function optimally if the data they are fed is sub-standard – so, again, proactive data management is essential.

Don’t Wait Until It’s Too Late

The risks associated with poor data management are no longer hypothetical. As regulations tighten and cyber threats grow more sophisticated, organisations must take immediate action to secure their data and prepare for the future.

Data management is not just a best practice—it’s a business imperative. Those who fail to act may find themselves not just facing financial losses, but quite literally locked out of their own operations.

In a world where your data could determine your survival, can you afford not to take control?