Is your organization becoming increasingly dependent on technology? Do you know what digital risk management is?
If your organization is becoming more dependent on technology it is also becoming vulnerable to certain digital threats and risks. Today, the management team of organizations are aggressively adopting new technologies to drive growth and demand. However, with the many technological advancements being put out every day, an organization needs to identify and address their individual risks. This can be done by creating a digital risk strategy to best manage these challenges. But first, let’s go over what risk management is.
The purpose of risk management is to identify potential problems before they occur or, in the case of opportunities, to try to leverage them to cause them to occur. Though digital risk refers to unwanted – and often unexpected – outcomes stemming from digital transformation and the adoption of related technologies. Cybersecurity risk, third-party risk, data privacy risk and other forms of digital risk add to the uncertainty of achieving business objectives. The ultimate objective of digital risk management is to build digital resiliency, where an organization’s systems and operations are designed to detect digital threats and respond to events to minimize business disruption and financial losses. Here are a couple of examples of digital risk:
1. Cybersecurity – The objective of accessing sensitive information and then using them for malicious acts
2. Compliance – Any new requirements or rules needed for a new technology
3. Automation – Risk of issues such as compatibility problems with technology, etc
4. Workforce – Any workforce issue that could pose a risk to an organization’s goals
5. Third-Party – Outsourcing to third-party vendors or service providers
6. Data Privacy – Risk of being able to protect sensitive data
7. Business Continuity – Any related business process that is based on technology
Digital risk management is an essential part of business management. It focuses on the threats and business risks and the IT systems supporting and processing them. Whether you’re trying to address cyber threats or third-party tools, the digital risk is becoming a crucial part of business risk management.
Contact SEGMENTECH today to learn more about digital risk management and how we can help create a digital risk strategy to best manage your challenges. We look forward to hearing from you.