Companies seek to obtain all the advantages based on technology that they can, as they adapt to new ways of working, manage employees and serve customers. They are making greater moves towards cloud computing, e-commerce, digital supply chains, artificial intelligence (AI) and machine learning (ML), data analysis and other areas that can provide efficiency and innovation.
At the same time, companies are trying to manage risk - and the same digital initiatives that create new opportunities can also lead to risks such as security breaches, regulatory compliance failures and other setbacks. The result is an ongoing conflict between the need to innovate and the need to mitigate risks.
"There will always be some tension about risk management and involvement in digital transformation work," says Ryan Smith, CIO at health care provider Intermountain Healthcare in the United States.
“As organizations work together to increase the level of digital access offered to consumers and members of the workforce that involve personal and business information, this creates entirely new forms of risk that must be mitigated compared to traditional ways of conducting business, ”says Smith. “These new commitment models, enabled through digital transformation, require different approaches to risk management.”
Here are four key areas where digital transformation efforts can pose risks - and how organizations can deal with them:
Multicloud or hybrid infrastructures
More organizations are moving to IT environments supported by multiple services in the cloud, typically by more than one vendor. This may include software-as-a-service (SaaS), platform-as-a-service (PaaS) offerings, or infrastructure as a service (IaaS) offerings.
Usually, companies hire IT Specialists to solve technical problems, such as computer systems, software, hardware, networks, cloud platforms, etc. Many information technology specialists often work from the central office, or in some cases, these professionals work remotely.
Regardless of the types of cloud computing used, hosting vital data and applications outside the organization's own defensive perimeter presents considerable risk, especially when multiple locations, services or suppliers are involved. In addition to data being lost or stolen, companies may experience problems with data privacy rules (GDPR), not to mention the risk of cost explosions that result from inappropriate cloud computing management practices.