More businesses than ever are embracing a digital transformation. Cloud-based systems, big data and AI are creating a flood of new opportunities to operate more effectively and better understand your customers.
But is your business prepared to tackle the new risks that emerge when it shifts onto a more digital footing? Or are you taking on unnecessary financial, operational and reputational dangers?
Keep reading to learn more about why your business needs to actively manage technology risk and how to get started.
What is technology risk management (TRM)?
Technology risk management focuses on managing and reducing risks that involve digital systems, data or implementing new technologies. This is a big picture branch of enterprise risk management that includes more focused risk areas like cybersecurity or AI, without being limited to them.
Technology-related risks include practical, operational realities like whether your systems actually function as they should. Vendor management and regulatory issues are also important, as is data integrity.
Your competition may also represent a technology risk to consider. Technology can be a growth driver that helps differentiate your business from competitors or make it easier to uncover new market opportunities. But it can also leave you falling behind if your competitor wields it more effectively.
Technology risk management involves taking all these factors into account and implementing a strategy to mitigate them.
Why technology risk management matters during digital transformation
When a business goes through a digital transformation that involves transitioning its core systems and data into the cloud, it suddenly faces a host of new risks. A thoughtful technology risk management strategy can make this process safer and more effective, while also mitigating ongoing risks.
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