Naturally, some worry comes with the territory of running a company. But no business leader wants to stay up all night fretting about what chaos unforeseen threats will bring. They want to have confidence in their business’s ability to handle risk. Building resiliency comes easier for leaders who anticipate a broad range of potential threats, but technology also plays a part.
With today’s rapidly changing business environment, tech can substantially contribute to a company’s risk management plan. As executives attempt to steer businesses away from mounting risks, specific tools can keep hazards at bay. Let’s examine five solutions that will ease leaders’ worries as they enhance their approaches to risk management.
1. Governance, Risk, and Compliance Software
If an organization is using spreadsheets to track compliance-related threats, this practice creates additional risk. Why? Because the process relies on manual input and lacks built-in security control. Besides, spreadsheets don’t scale as teams branch out. Transparency becomes an issue as data silos form between separate functions.
For instance, doctors in busy hospitals might believe they can release patients as soon as they’re on the mend. But medical social workers must follow additional procedures for at-risk patients who need transfers to follow-up care facilities. Governance, risk, and compliance solutions, also known as GRC tools, can increase transparency by streamlining different departments’ processes.
In this case, doctors will become aware of potential compliance-related discharge procedures for specific patients. They’ll realize the need to include a medical social worker in the release process. As each employee tracks their activities within GRC applications, managers can see the facility is following protocol. Plus, leaders aren’t in the dark about whether there are inconsistencies in workers’ understanding of requirements that reduce risks.
2. Project Risk Management Tools
GRC software might look at the big picture, but project risk management tools identify emerging threats at the micro level. It’s not uncommon for risks to seemingly come out of nowhere because of ties to a single initiative. If team members working on projects overlook associated threats, these hazards might turn into widespread problems.
Take, for example, a project to upgrade a cellular service provider’s network. The service provider also has roaming agreements with other carriers. It’s been known for months that those partners are upgrading their networks, too. These upgrades mean older phones will no longer work, requiring subscribers to purchase updated devices. Customer churn becomes a likely risk if the cellular service provider doesn’t notify impacted subscribers.
By the time the team notices an increase in churn, it may be too late to stop the exodus. Or drastic measures, such as offering heavily discounted phones, might be necessary to stem the flow of departing customers. Risk management tools eliminate “surprises” like these by alerting teams about emerging threats related to separate initiatives. These apps also use risk matrix features to inform employees of the probabilities of a project’s specific threats.
3. Network Security Services
It seems like there’s an ever-growing list of tools businesses should use for network security. Anti-malware apps and firewalls often aren’t enough to prevent the wrong people from misusing sensitive resources. The FBI lists compromised business emails and ransomware as two of the top online risks in today’s environment. Often, hackers can get around basic protection measures by tricking employees into clicking malicious links.
Because of ransomware’s capabilities, one click or download can shut down an entire company. Businesses with more resources might recover, but those with fewer assets may not. Employee education is a crucial part of any network security plan. So are extensive services that go beyond elementary protection.
Advanced tools, such as penetration testing solutions, show leaders where vulnerabilities exist. A company’s network might be susceptible because there aren’t enough staff members to keep up with software updates. There could be no response plan for network intrusions or a lack of proactive monitoring. Businesses of all sizes can partner with managed service providers to implement tighter network security solutions and fill resource gaps.
4. Credit Scoring Applications
Companies in many industries take a gamble on customers’ ability to pay for products after the sale. While post-pay agreements are more common in service industries, businesses that sell to other organizations also take this risk. Late payments impact a company’s bottom line, as do write-offs.
Credit scoring applications show which clients are more likely to default on their payments. By using automated solutions, companies can accurately assess which customers fall higher on the risk scale. Since scores may change over time, some solutions also analyze clients’ ongoing behaviors.
Say a consumer applies for a new credit card. They pass the initial credit check with flying colors and pay their bills for this card on time. But six months later, the bank’s scoring software shows the customer has a history of paying other creditors 30 days late. In addition, this individual only makes minimum payments on those accounts while racking up high balances. Based on the person’s behaviors, the bank might reduce their credit limit to mitigate risk.
5. Cloud-Based Solutions
Some business leaders may prefer to use onsite IT equipment, including servers. This setup puts more control in the hands of in-house staff members. At the same time, such equipment exposes a company to threats.
If a natural disaster occurs, it could damage onsite hardware, taking a business offline and/or resulting in data loss. Switching to cloud-based solutions mitigates these risks, since a company’s most critical IT resources are offsite.
Cloud providers can also establish redundancy when disasters occur. Under a 100% cloud or hybrid model, adverse local circumstances don’t have to bring operations to a halt. Companies using a 100% cloud setup can establish redundancy through providers with several hosting locations. With a hybrid model, cloud resources take over when on-premise equipment goes offline.
Managing Risks With Tech
Avoiding every business risk isn’t realistic. It’s no wonder, then, that executives experience some anxiety about the most likely threats their companies face. Fortunately, by implementing thoughtful mitigation plans with innovative tech tools, leaders can put many of these worries to rest.