Data quality: Underestimated risks and solutions

These are the obvious ones:

Wrong decisions

Wrong investments or an unattractive range of products: wrong decisions such as these arise due to inaccurate or incomplete information caused by a lack of data quality. This harbours the risk of companies losing their balance and becoming less competitive.

Increased costs

The effort involved in correcting incorrect data means a loss of time and money. It also ties up employees’ time budgets for creative activities. For small and medium-sized companies in particular, the cost of troubleshooting can be a considerable burden.

But that’s not all.

Reputation

One aspect that is often overlooked is the impact on a company’s reputation. Poor data quality can seriously affect the confidence of investors, customers and other stakeholders. This can lead to negative media coverage, a drop in share price, reluctance from potential business partners and loss of customers.

Compliance

Another underestimated risk is legal liability. Companies must provide accurate financial information to avoid legal consequences such as fines and legal action against the company and its executives. A systematic approach to data security is therefore essential to minimise compliance risks.

Insurance problems

Incorrect information due to poor data quality can lead to problems with the insurance company. Insurance companies rely on accurate data to set premiums and assess cover. This can result in the company losing insurance cover or having to pay higher premiums.

Extended process times

Poor data quality can lead to longer process times, for example in order processing, credit decisions, customer service or planning and budgeting.

A proactive approach to data quality not only helps to minimise financial and legal risks, but also strengthens stakeholder confidence and improves the company’s overall performance and competitiveness. In an increasingly data-driven business world, the quality of data is critical to the long-term success of an organisation.

Secure data quality with Inventory 365

The stock value can not only save time and money, but also spare your nerves. Quickly identifying differences between stock accounting and financial accounting, uncovering incorrect postings, analysing details and taking action to correct them – all this will be presented in one of our next webinars. Visit us for more information and to register:
Webinars.