Don't underestimate IT risk!
Supply security, market credibility and continuity are considered to be the biggest risks for companies. Yet, more time is often spent managing exchange rate risks than managing IT risks, even though these can have a greater impact on businesses than a change in the dollar exchange rate. The consequences when something happens in the IT area can be extremely serious, for example if production or logistics are affected or if it is not possible to send an order or handle invoices.
Other risks and challenges are poor data quality, incorrect interpretation of customer behavior and invoice matching with suppliers. And last, but not least, that the management team and board have too little knowledge of how IT and technology affect business and market conditions.
Taking control of the supply chain – more than an IT issue
- Security of supply: a supply chain disruption or shortage of critical resources can affect the company's ability to deliver to customers
- Market credibility: A loss of trust can negatively affect sales and customer loyalty.
- Continuity: The ability to maintain operations over time, even in the event of unexpected events such as economic fluctuations or technical problems. If the company cannot maintain continuity, it can lead to lost revenue and damage the company's reputation.
Risk management for the company's data and IT systems
Companies that want to be able to act quickly in the event of a crisis, such as a breach, supply chain disruption or data failure, should have a strategy for managing risks. It is crucial to have a common view of IT and the key figures that measure the mobility of data in the business as well as measure the efficiency of the processes. Risks should be prioritized based on impact on revenue. The business's strategy can then be structured based on what is most important. It becomes easier to manage risks if the staff feel that it is also their responsibility.
The management team and board need to know more about IT and technology
The role and responsibility of the management team and the board of directors for risk management is important to ensure that the company is well prepared and can make the right decisions in the event of unforeseen events. An understanding of technology and data analytics to be able to identify potential risks and opportunities, and prioritize them based on their impact on the company's revenue and critical data is central. The biggest risk is that companies turn a blind eye to the risks. Risk management for the company's data and IT systems
Companies that want to be able to act quickly in the event of a crisis, such as a breach, supply chain disruption or data failure, should have a strategy for managing risks. It is crucial to have a common view of IT and the key figures that measure the mobility of data in the business as well as measure the efficiency of the processes. Risks should be prioritized based on impact on revenue. The business's strategy can then be structured based on what is most important. It becomes easier to manage risks if the staff feel that it is also their responsibility.
The management team and board need to know more about IT and technology
The role and responsibility of the management team and the board of directors for risk management is important to ensure that the company is well prepared and can make the right decisions in the event of unforeseen events. An understanding of technology and data analytics to be able to identify potential risks and opportunities, and prioritize them based on their impact on the company's revenue and critical data is central. The biggest risk is that companies turn a blind eye to the risks.
Data can help companies make decisions
Data and technology play a critical role in enabling companies to make the right decisions. By using and analyzing data, companies can get a clearer picture of how efficient different departments are, which can lead to better decision-making.
- Data can help companies prioritize risks based on their impact on revenue and day-to-day operations.
- The right structure and system integrations need to be in place to be able to measure and analyze data correctly.
- Poor data quality can negatively impact businesses and lead to misinterpretations of customer behavior or poor delivery security, which can lead to a lack of credibility and be damaging to the brand.
- It can be difficult to manage risks in the company in a proactive way if staff and various departments do not feel that it is their responsibility. It is important that employees are involved so that they understand and have a common view of IT.
- Measure the effectiveness of operations and processes.
Conclusion
It is critical for companies to have the right structure, culture and technology in place to be able to use data effectively to make informed decisions and reduce risk. Companies should prioritize risks based on their impact on revenue and critical data. Negligence can cost companies dearly, even the management team and board must be more aware of what can happen. By using data in the right way, companies can increase efficiency, improve decision-making and proactively manage risk. This will help the companies to be more competitive and successful in the long term.