News
17/02/2021
Digital Transformation: the main risks
In our last episode, we “zoomed-in” in the value of having sound technological partners in your digital innovation journey, providing you with the caveats regarding the establishment of a fruitful partnership to trigger digital innovation.
Today we would like to address risks that may arise during a digital transition process.
The key risks to monitor are:
1. Technology risk:
Entails losses due to technology failures, with key risk areas being scalability, compatibility and accuracy of technological functionalities; these disruptions and IT disasters can undermine the resilience of the company, leading to poor recovery
2. Cyber and Data leakage risk:
Entails the unauthorised access by third-party to sensitive information and inefficacy in ensuring data protection; key areas to monitor include application security, vulnerability management, data retention, processing and encryption
3. Strategic and Operational risk:
Entails inefficacy due to a shift in operations combined with a non-coherent shift in strategic direction of the organization and inadequate controls in operating procedures
4. Third party-related risk:
Risks arising from scarce control over vendors and related third-parties
5. Forensics and Regulatory risk:
Risks are associated with the capability of the digital environment to capture court-admissible data evidence, and with the increased regulation and requirements the firm is obliged to comply with (i.e., technology laws and sectoral laws).
A fast-paced digital transformation can cause to not pay enough attention and to get tangled in one or more of these traps.
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