Businesses today are run using systems and software; technology has been fully imbedded into every aspect pf business. From accounting to marketing; communication; customer relations; compliance; procurement; production, and all other activities. Technology is now the frame within which business operate.
For big and multinational companies, technology is the tool that enhance efficiency in operation as well as transparency and accountability in management. In small businesses and start-ups, technology is the means to make known and to identity with a niche.
Earlier, technology was primarily viewed as a competitive advantage. And while it still is, today, it is more than just that; it is a necessity to the daily operations of business and ultimately to the survival of any business.
Most transactions, whether B2B or B2C, are largely done via automated payment systems. Social Media platforms are significantly useful is customer relations. Automated production methods are vital to scaling up, while automated data capture and record keeping enhance accountability.
What’s new, in modern day, adapting technology equally leaves the business vulnerable to numerous risks. Technology risk pose great threat to business. With just a click, a hacker can disrupt business in an entire industry and lead to mass losses.
Notably, technology risks are by now well known; malware, data breaches, and other cyber attacks. However, can businesses leverage technology in risk management.
One of the most important important step in business risk mitigation is Risk Planning. Risk planning helps to identify potential risks even before they occur or as soon as they start affecting business. Risk identified earlier on is easier to manage leading to successful risk mitigation.
Stakeholders must therefore increase investment in risk management systems. Basically, risk management systems provide increased visibility of relevant data and information, and at the same time track the accountability of those involved. Adapting analytics into risk management systems helps unravel key trends and patterns and to spot potential disruptions. As a result, the right risk mitigation strategies are formed and timely mitigated.
It is reasonable to say that leveraging technology can help businesses better manage risks. Technology embedded with analytics can transform available data into insights and key response indicators. By factoring variability and constraints, stakeholders can convert these insights into the best risk mitigation plans.
