35% of European Finance Managers Happy to Store Confidential Accounting Records in Cloud

Europe’s financial decision-makers could be embracing cloud storage without fully grasping the associated data protection risks and implications, according to new research [1] from storage and information management services company Iron Mountain, Inc.

The study found that over 35% of finance managers believe it is appropriate to store confidential accounts, invoices, insurance claims and tax records in the cloud, compared with 32% of IT managers.

An overwhelming 88% of UK finance leaders believe that responsibility for the protection of their business data rests with the service provider. This, however, is wrong: EU law places accountability for lost or compromised data firmly in the hands of the data owner [2].

When it comes to making the decision to store sensitive information in the cloud, finance leaders are slightly more relaxed about the cloud than their counterparts in IT. Finance managers were less likely than IT to worry about data protection (49% compared to 55%), security and compliance issues (45% compared to 49%), and whether or how data might be copied and moved around (23% compared to 25).

Commenting on the findings, Christian Toon, head of information risk at Iron Mountain Europe said: "Take your head out of the cloud before you put your information there. Lose or leak your information in the cloud and your business is ultimately responsible. It is important to note that cloud storage does not replace the need for a comprehensive archive and backup strategy. Companies are advised to take an approach that combines the benefits of cloud storage with the offline protection of magnetic tape technology. With financial departments under immense pressure to cut costs and improve efficiencies, the cloud can seem an attractive opportunity. We would encourage businesses to consider the cloud, but not to do so indiscriminately. A lack of understanding of the risks associated with cloud storage can lead to ill-considered strategies that could expose businesses to data breaches and the associated financial and long-term reputational impacts."

The Iron Mountain study questioned IT, finance and legal decision-makers in mid- to large- businesses across the UK, Spain, France, Germany, the Netherlands and Hungary. It found that cloud based storage is an immensely popular option for firms, with 85% of UK business managers surveyed saying they had moved or planned to move data to the cloud in the next 12 months.

[1]Research by Opinion Matters on behalf of Iron Mountain, carried out between 30/11/2012 and 14/12/2012. Sample: 1,275 IT decision makers, finance decision makers, legal decision makers in the UK, France, Hungary Germany, Netherlands and Spain in mid to large businesses (50-5,000 staff).

[2]The UK’s Data Protection Act and the EU Data Protection Directive state that ultimate responsibility for security lies with the ‘data controller’ – the one deciding how and why the data is being stored and processed.