Over the last 40 years, the digital age has dawned, and profoundly changed the modern society. As a business that is concerned about risk management, staying on top of the emerging risks is a necessity, but the mind boggling speed of technological advancement has made this difficult. With a modern business relying so much on technology, it is then imperative that every effort is made to manage the risks of a digital age.
Cyber Crime Is Real, Cyber Police Aren't
The internet can be a dangerous place. For a business the danger could be a mischievous attack that will take down your website for a few hours or a more sinister database hack that could cost you all of your valuable information and customer data. A credit card system can be compromised for days before a threat is located, and your valuable company data could be stolen or lost with no traces. Hackers are becoming better at entering systems and leaving no trace, and once they’ve done their deed, there’s little you can do. Necessary security precautions must be put in place, especially by companies working in the financial and health care sectors.
Social Media Nightmare
Reputational risk management is another emerging danger in the Web 2.0 landscape. Your internet presence is a window into your organization for millions of people, so the message that it puts out must be consistent with company goals. Even if a company has no social media presence, a blogging disgruntled employee or a dis-satisfied client posting on Twitter, Facebook, or Google+ could damage your reputation, and in turn, your sales or market share. As a risk management procedure, it’s a good idea to include policies in your employee handbook governing social media usage.
All systems are in risk of failure
Network security, backups, email archiving, and encrypted data are all examples of measures taken to keep your information safe - be it from accidental loss or a malevolent attack. It is important to note however, that these measures must protect data from both cyber risk (e.g., hacking, digital theft, etc.) but also physical hazards such as fire, flood, or other natural disasters. Solutions like cloud computing have been put into place to put a business owner’s mind at ease, but no system is 100% safe. Next time you talk to your data security provider, open up a dialogue and ask what measures they have in place and what you can do to better manage your risks. The risks continually evolve; your response must also.
It’s true the emerging technological wonderland we live in provides its fair share of risks, but it also inspires innovation and advancement. The technology itself continues to change and evolve. With this evolution, priority must be placed on managing the risks of the digital age.
