In the business world, profitability is the end-game goal and in order to help achieve this measure of success, businesses are working diligently to control costs. While managing expenses with a keen and watchful eye is important, there are certain aspects of running a successful business that are so important - so critical - that a decision can't be made based on dollars and cents alone. For example, consider the growing epidemic of identity theft.

Businesses have the responsibility to protect the information they are managing. According to the latest statistics, it is estimated that one in 20 Americans are, or will be, the victims of identity theft and security breaches. In 2009, more than 11.2 million people lost approximately $54 billion dollars. This stat represents a whopping $7 billion increase from the year before!

From stolen wallets to sophisticated online phishing schemes, identity theft can come in almost any shape and size these days. Yet one of the most common openings for identity theft stems from sensitive, personal information being disposed of in an unsecure manner. There are numerous opportunities for such crimes when you consider that credit card numbers, banking information, etc. are commonly printed for billing or record-keeping purposes...yet, how are they disposed of?

Unlike one might guess, the bulk of identity theft does not occur at the hands of a disenfranchised or nefarious employee. Rather, it comes from this highly-sensitive information being left in trash cans or recycling bins where a third party vendor is responsible for disposing of it. Unless the company responsible for removing this paperwork adheres to rigorous disposal standards, sensitive information could be exposed. The repercussions for such breaches extend far beyond the inconvenience and financial distress to the victims. All potential victims, even if unaffected initially, need to be notified. You may need to offer complimentary credit monitoring services to the potential victims who were exposed. These notifications and services cost money and time.

Just as troubling as the direct impact to victims is the state of your company's reputation. As word of the breach reaches the marketplace, new prospects may be hesitant to do business with a company who has a track-record of non secure and compliant practices. Moreover, your company will likely be subject to future protocol audits after experiencing such a breach. As one can envision, the financial repercussions of such a security breach extend far beyond the cost to victims.

This worst-case identity theft scenario is preventable, so long as you properly execute and manage the disposal of sensitive information. While a bottom-line, expense-controlling mindset may lean toward an in-house model, securely disposing of sensitive data requires more than purchasing a paper shredder from your local office supplier. Resources need to be allocated to collecting and destroying the paperwork - and it must be shredded in such a manner that the paperwork can never be reconstructed. Additionally, the equipment itself must be maintained.

With these very real hard and soft costs, another approach may be to select information destruction services from a reputable, external vendor. With a business based solely on collecting and securely destroying sensitive data, the outsourced vendor should be able to offer: best-in-class equipment, reliable scheduled pick-ups and an established, secure document destruction protocol -- preferably on site, where all sensitive information is destroyed before it leaves your property. While price can be a consideration, the security of sensitive information has such far-reaching ramifications that you shouldn't be making a purchase decision based on price alone. Finally, much like properly disposing of sensitive information helps protect your company's reputation, research outsourced disposal vendors carefully and choose one with a stellar reputation.

With a clear understanding of the magnitude of identity theft and the financial effects for both victims and companies, it makes sense to carefully review your document disposal process. Rather than let bottom-line price control your decision-making, consider what a breach of security could potentially cost your business and how much it is truly worth to minimize that risk by finding a reliable solution that protects your clients and your company.