Business is evolving at the speed of technology. As more businesses embrace the benefits that go along with digitalization, it is imperative that you also explore the risks that go along with increasing digitalization in your business and create effective risk management solutions to address those risks.
Increased Digitalization Creates Growing Risks for Businesses
Don’t get me wrong, there are many benefits that go along with increased digitalization in business. In fact, it is nearly impossible, in today’s economy, to remain competitive without embracing at least some of the benefits digitalization of businesses offers. This includes things like:
· Greater efficiency.
· “Smart” operations.
· Increasing analytics and use of “big data.”
· Reduced maintenance.
· Fewer concerns over human error.
However, you cannot turn a blind eye to the growing risks that this creates. The more information your business digitalizes, the more information is potentially vulnerable to cyber attacks, computer equipment failures, and malicious or unintentional exposure from employees. Gone are the days when only large corporations were targeted for hacking attacks. Small and medium-sized businesses are primary targets for hackers today looking for “easy marks.”
You must mitigate your risks and potential exposure in as many ways as possible to reduce your risks and exposures from a world that has gone increasingly digital. These are the steps you can take to help reduce your risks.
Scrutinize Your Internal Controls
The key is to prevent accidental breaches from employees as well as malicious breaches from hackers. You need to create policies the promote digital safety and security for your entire organization. From passwords to practices you need to promote cybersecurity at every turn.
Take this opportunity to examine existing policies within your organization concerning digital safety and security. You not only need to explore the policies you have in place but also how compliant your employees are when it comes to following these policies.
For instance, a policy requiring employees to change passwords every 30 days is ineffective if employees are using the same passwords they used when they started their jobs (or if they are writing them down or sending them to their personal email accounts to help them remember).
Invest in Cyber Insurance
While prevention is the best cure against the emerging risk of digitalization, there are some instances where even the best preventative measures aren’t enough to defend against a determined hacker. Ultimately, you are responsible for the personal and financial information of your customers and employees. It is your responsibility to protect them. Cyber insurance protects your business when these types of breaches occur and helps your business recover from the financial fallout of these types of attacks.
According to Inc.com, 60 percent of small businesses go under within six months of a cyber attack. The best thing you can do, for the sake of your business is to take preventative measures to defend against them and to insure your business with the right insurance protection when they do happen.