IT Risks for your Business

To survive in a market environment, it is necessary to introduce technical innovations and take bold non-trivial actions, and this increases the risk. For any business, it is important not to avoid risk altogether (it is almost impossible), but to study, anticipate, assess and manage risks in order to minimize them, and, if possible, turn them into a positive factor in the form of additional income. 

Business risks are caused by the influence of various factors related to both internal processes of the company and external macroeconomic, regional and industry aspects. The most important external factors include inflation (a significant and uneven increase in prices for raw materials, fuel, energy, components, transport and other services, as well as for products and services of the enterprise); changes in bank interest rates and credit conditions, tax rates and customs duties; changes in ownership and lease relations, in labor legislation, etc.

Types of IT Risks

If we consider the risk from the business side, it is the risk of the possibility of inadequate profits or even losses associated with uncertainties such as competition, changes in customer taste and demand, input costs, changes in government policy, etc. Business risk arises from the competition, market conditions, product mix, etc. The two main factors leading to business risk are: 

  1. Internal risk – the risk that arises from events that occur within the organization. These risks are controllable. They arise from factors such as strikes, union stoppages, factory accidents, employee negligence, machine failure, technological obsolescence, product damage, fire outbreak, etc. 
  2. External risk is the risk arising from external events for the firm and therefore it is not under control. It may arise due to price fluctuations, changes in customer taste, government regulations, force majeure circumstances, etc. 

Information and technological advances in recent decades have had a significant impact on all areas of life, including information technology – IT – which has significantly increased business opportunities. Effective solutions and forecasting of problems related to IT become one of the most important tasks in the organization of business structures. 

Regarding the set of situations that can lead to financial losses, lost profits, or inability to achieve the goal, it is worth using the economic concept of risk. The risk arising from the improper operation of information technology has the same characteristics as the economic risk and also leads to various kinds of damage to the organization, and the lack of predictability of the IT sphere is the main source of risk for IT organizations. 

The solution to problems associated with the emergence of IT risks, that is, risk management includes a list of necessary measures: timely response to emerging situations, risk management, assessment of their threat and maintaining awareness of them.

To protect your business from IT risks, entrust your security to IT support in Los Angeles at Digital Uppercut.

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