FACT CHECKED
In the past couple of years, the digital era is becoming more familiar and astonishing. Moreover, almost every human activity is now digital. Hence, this era has more data that generated over the past two years than in all of previous recorded history.
However the number of risks and its complexity also increase with technology improvement. The complexity of the development makes it very difficult for organizations to get their arms around the entire risk profile.
There’s absolutely no denying there is a countless variety of advantages of having a digital transformation strategy. But when it comes from risk management perspective, digitalization shows extraordinary new challenges.
Furthermore, it is not only creating new and higher levels of risk, but it forming new types of risk as well.
The Future And The Risk
A group of an analyst from Gartner claimed that by 2020, 60 percent of digital businesses will suffer major service failures from digital transformation. This is because of the incapacity of IT security teams to manage digital risk.
If we look back in the past to the WannaCry virus attack, it caused global trouble and brought many companies to their knees. It is also a reminder of how quickly risk spreads to and within organizations if it is not managed efficiently.
Great companies are the ones who do not just take advantage of the priceless opportunities of digital transformation. However, they quickly address and manage the rapidly evolving risks.
In this post, it presents few principles for managing the risk in the age of digital transformation:
Connectivity
It must have the ability to share data both internally and externally in order to improve overall efficiency. Risks do not necessarily stop at the limits of a company. Hence, by being able to connect with external partners, vendors and suppliers is a critical method for managing risk across the value sequence.
Data
Data must have an expanding account for models across myriad systems. Too often disconnected, several data in multiple systems is obstructing the ability to aggregate risk data. It also provides full insight into the risk exposure an organization is facing.
Therefore, the discipline of data is key to understand and articulate an institution total risk exposure.
Transformation
Transformation is the streamlined processes that coordinate across various systems. To reach this, a careful planning and executing a digital transformation plan. Also, it derives from a clear digital transformation strategy.
Integration
It must be consistent connectivity across all IT operations. Furthermore, it relates to breaking down silos so that transformation can occur.
From a risk management perspective, it is the key to the fundamental nature of most governance. However, risk management and compliance software solution today is actually blocking the most company’s collaboration.
Visibility
Visibility is a real-time knowledge of the entire business. It also enables quick response to opportunities and challenges.
Applications
It controls and automates the processes that span multiple applications and systems. In other words, it means that apps are rapidly developing and deploying on top of the most platform.
To relate it to the transformation, risk management needs to become agiler. Moreover, fast development of new risk management applications must be on the digital platform.
Scale
Scale leverage huge data for business advantages with development that are driven by difficult analytics. In the present, a vast amount of data is available and accessible to companies.
In addition, data solutions are keys to leveraging all new information. For example, these data include social-media presence, customer payment and spending behavior, and online browsing activity.
