Digital risk is a reality, and it has a long-term effect on an organization’s initiatives, actions, and decisions. Businesses that progressively rely on digital processes to run their business should have a clear vision for security and digital risk management. Failure to manage digital security is likely to sabotage your revenue, and the potential impacts are going to be huge. Engaging in digital risk management is critical as it affects your business performance to a higher level. This starts with identifying your risks, assessing them and controlling them. Yes, risk management is the highest priority today for every digital business.
Thanks to the modern-day technology that lets every business to create a structured digital risk management program. Few work-outs allow you to handle digital risk management easily while on your ride back home. It is easy, but, it requires a bit of alertness too. What means apples today may turn to be oranges tomorrow. To make it simple for you, here is a quick checklist for your digital risk management program.
Sustainable Digital Risk Management Framework
- Have a structured program that can support resilience
- Identify the blind spots with AI and ML
- Generate accountability
- Identify major challenges
- Identify new possibilities with Blockchain
- Plan for continuous risk assessment
- Be ready for the future
1) Have a structured program that can support resilience
Security is a wider-level issue. Online merchants are facing losses with the growing fraud and risks that need to be constantly evaluated and experimented to arrive at a process to combat the issue.
Data risk management should involve not only those data which are in use but should even include data that are at rest and in the flow; in the pipeline. For an effective digital environment, top Ecommerce companies believe that they should consider security as the top factor as it is directly associated with their customers and the business. So, for businesses that deal with big data, a threat arises mainly due to the unstructured and improper way of handling personal and sensitive data of customers that can have a direct impact on the privacy. Ensuring data protection and encryption is crucial here. Identify those tools and software that can help you with this task.
2) Discover the blind spots with AI and ML
Adopting new technologies is proving to have incremental benefits to all businesses today. Artificial Intelligence (AI) and Machine learning (ML) are such innovations that will become a normal part of security solutions shortly. Among the various other use cases of AI and ML in several sectors like banking, Insurance, healthcare, manufacturing, retail, supply chain, transportation and so on, fraud prevention takes the lead role. Various divisions are exploring the use of AI and ML in the study and analysis of suspicious transactions and those that warrant serious attention, allowing focus on higher-risk transactions.
Business needs to take complete advantage of both AI and ML to manage security, fraud detection, and other regulatory compliance functions.
3) Generate accountability
Author Subir Chowdhury says in one of his books that Good Enough Isn’t Enough. The difference, as Subir explains, is the accountability. This difference will differentiate every organization and make it successful. The General Data Protection Regulation (GDPR) incorporates accountability as a key factor which demands every organization to follow appropriate measures and work in compliance with the law. Such practices will help organizations to control threats and vulnerabilities with superior transparency, gained through improved management and regulatory reporting.
4) Identify major challenges
Any digital risk management program starts with the identification of key risks and vulnerabilities across all business functions. Identifying risks helps you to mitigate them easily. Business leaders along with the members of the organization need to make informed choices through a structured risk identification and assessment program that supports resilience, flexibility, and accountability across various business functions.
5) Identify new possibilities with Blockchain
The blockchain is the latest and the most trustable crypto technology that has the potential to block both internal and external threats. This technology is currently adopted by several sectors including banks and other financial institutions. The technology is poised to deliver incredible risk management possibilities in healthcare, supply chain, insurance, banks and other areas which involve huge data and currency transactions. Facts reveal that every online business should have Blockchain technology to prevent vulnerabilities and risks.
6) Plan for continuous risk assessment
Digital risk management is not a onetime investment process. Maintaining ongoing risk assessment and having a consistent control will not only increase return on investment but also protects business value. Every organization should run this program frequently and well aligned with all functions of their current business model to reduce loses. Test under real circumstances and see if the program works for your type of business.
7) Be ready for the future
Define a clear process for implementing changes in your existing business structure and functions. Ensure the control measurements are maintained and updated regularly. Ensure that your digital risk management program is scalable and flexible with the transforming digital excellence. Monitor and maintain periodically. Such measures can always keep your business fit and ready for the future.
More digitalization. More risk. More risk management.
Businesses today are increasingly realizing the potential benefits of the digital opportunities. But, very few learn to deal with the risk associated with their actions and decisions. Digital risk management is important for business sustainability. Do not consider this as a silo. Harnessing risk management can prevent roadblocks and drive business success. It can be a major differentiator to increase your market share.
Have a practical approach based on the type of business that you deal with. Be alert to risk-tolerant ideas. Think beyond traditional risk and security issues.