The 3 P’s of Proper IT Asset Disposition
IT asset disposition (ITAD) is the business of responsibly retiring unwanted computer assets.
Sounds straightforward enough, right? It usually is.
However, it also comes with a frustrating paradox:
Although ITAD is based on trust, it’s often full of false promises and finger-pointing.
ITAD vendors build their reputation by promising to protect their clients. Yet, when an asset falls into the wrong hands, it’s always the client left holding the bag.
And vendors aren’t the only source of potential liability. Theft and misplaced assets also present security risks. In fact, most breaches occur because the vendor never received the equipment in the first place.
So, how can you ensure your company is protected from potential legal and financial repercussions? By following the Three P’s of proper ITAD: Prevention, Protection, and Price.
1. Prevention
Improper ITAD carries risks that should be keeping executives awake at night.
Case in point: Morgan Stanley recently suffered an ITAD breach that cost them $60 million in fines and numerous class-action lawsuits to deal with.
Taking a proactive approach to ITAD prevents potential issues to give you and your team peace of mind.
Take these steps to prevent potential ITAD issues:
● Utilize disposal tags: cataloging your assets using disposal tags (as opposed to serial numbers alone) helps deter theft by establishing a clear chain-of-custody, while increasing tracking accuracy from 50% to nearly 100%.
● Stop sharing your inventory: sharing your inventory with disreputable vendors can undermine your ITAD security by providing them with a convenient he-said-she-said alibi. Don’t do it!
● Have your equipment held: always require your ITAD vendor to quarantine equipment until all assets have been accounted for. Never allow a vendor to resell or destroy equipment until chain-of-custody has been established.
● Destroy or secure data before a move: destroying sensitive data before equipment leaves your facility can stop a breach dead in its tracks. Utilize erasure software to ensure data is removed from all assets identified for disposition, and make sure to properly document your destruction efforts.
● Maintain separation of duties: never let the fox watch the henhouse. Putting processes in place to validate chain-of-custody ensures that employees can be held accountable for lost or misplaced assets.
2. Protection
Prevention is your best protection with ITAD. However, things fall through the cracks, and breaches can happen despite your best efforts.
Once you’ve taken all the right steps to prevent a problem, focus on how to protect your company in the event of a worst-case scenario.
Help protect your organization from security breaches by:
● Recognizing that ITAD relationships are inherently adversarial: you can’t always count on your ITAD vendor to protect you. Revisit existing contracts and service agreements with this in mind and make sure they’re set up to safeguard you in case of an incident.
● Ignoring vanity metrics: when a vendor provides success data, focus only on effective, actionable metrics like percentage of tracked assets, inventory reporting accuracy, etc.
● Remembering that insurance is never enough: liability for data security risks is poorly addressed by most corporate insurance policies. Never rely on your or a vendor’s policy to reimburse you in the event of a breach.
● Documenting everything: chain-of-custody evidence is central to successful IT asset disposition and data breach prevention. Make sure to carefully document when each asset was collected, where it was transferred, and who handled it.
3. Price
What does it cost to recycle a computer? Ask a dozen ITAD vendors that question, and you’ll receive a dozen different answers.
There are a lot of misconceptions about the price or cost of IT asset disposition. But that doesn’t mean you should be left in the dark. Educating yourself about the true cost of ITAD can help ensure you’re getting the best value for your money.
Ensure you’re receiving the best price for ITAD services by:
● Accepting that there is no such thing as “free recycling”: often, the proceeds from the resale of IT assets surpass the cost, so vendors advertise free recycling. Without a clear view of each asset’s value, you are likely missing out on potential profits.
● Getting competitive: without competition, even the best ITAD vendors will underpay for equipment and overcharge for services. A little competition goes a long way towards maximizing value and promoting excellent service.
● Separating cost components: avoid hidden costs by requesting that each vendor provide their cost with, and without, transportation included. And always look at the cost separate from any remarketing.
● Auditing invoices and settlement reports: 17% of ITAD vendor invoices contain an error. As with any service, it’s important to analyze charges and inspect invoices to avoid overpaying. A simple audit will typically identify common billing errors.
● Remembering that you can’t beat the market: the market for used IT equipment resembles the market for most commodities. It is constantly changing. Because of this, the goal should always be to be on-market, not to beat it.
Final Thoughts
When it comes to ITAD, an ounce of prevention is worth a pound of cure.
By taking the time to evaluate and update your current procedures, you can ensure you’re capturing the full benefits of outsourcing ITAD, avoid costly mistakes, and get the best value for your money.
Best of all, you can rest easy knowing that your company is protected — no matter the scenario.
That’s where a company like Retire-IT come in. We take the guesswork out of ITAD by providing your company with comprehensive solutions to asset disposition. From servers to smartphones, we help organizations manage the constant cycle of electronics disposal.
Reach out to us today to learn more about the 3 P’s and let us help you take back control of your company’s data security.
We’ve put together an eBook, The Three Ps of Proper IT Asset Disposition. Download a copy for free here.
