When configuring backup file encryption, the following warning is shown:
Loss protection disabled
This warning appears when the Veeam Backup & Replication installation is not managed by a Veeam Backup Enterprise Manager server, which in turn enables Password Recovery.
If you lose or forget your password, you will not be able to recover data from backups or tapes encrypted with the password, unless you use Enterprise Manager keys in the encryption process.
When a Veeam Backup & Replication server is managed by Veeam Backup Enterprise Manager it allows for Password Recovery.
For more information about Encryption Keys and Password Recovery, review:
To enable password loss protection, add the Veeam Backup & Replication server to a Veeam Backup Enterprise Manager server.
If no Veeam Backup Enterprise Manager server is present in the environment, one must be deployed.
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