Any organisation which uses technology in its operations to store, manipulate, transfer or create data or information, is at technological and data risk. This applies to practically every company operating today, regardless of their levels of technological use. Technology risk is a firm’s exposure to potential loss resulting from the failure of its information technology (IT) systems. Data risk relates primarily to the organisation’s exposure to loss through its limitations in acquiring and using its data, including the storage, movement, transformation or other forms of data manipulation. From the largest MNCs to sole proprietors, cottage industries and independent producers – all use technology in some form or other. Technology risk therefore concerns everyone because it ultimately affects all stakeholders.
Unfortunately, technology risks expand in parallel with technological use, particularly because technology is being utilised to create more technology, such as cloud computing and remote data storage; the risks therefore grow in tandem. As technology grows more sophisticated, so too does the possibility of destroying or corrupting data, which can have far-reaching consequences for companies, although it may not be immediately obvious. Its eventual manifestation may result in the loss of revenue or reputation, or both. It is pragmatic, therefore, for organisations to “bite the bullet,” accept that they are at risk, and move concertedly to put mitigative measures in place.
Data is an extremely valuable asset and has to be protected. It includes staff and customer information which may be confidential and proprietary, the loss of which could damage the organisation.
18 The IERP® Monthly Newsletter September - November 2021
Technology and Data Risk