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Why IT Companies Need Risk Management Tools

six office workers sitting around table

IT and software companies in today’s digital age require professional risk management tools now than perhaps ever before. These types of businesses are prone to specific types of risk that need to be mitigated and managed, which is where reliable risk management software comes into the picture.

Almost all businesses today use big data analytics to assist with marketing strategies, product design, keeping metrics on productivity, providing superior customer feedback, and much more. While this used to be largely in the domain of large corporations, the barrier to entry has now sufficiently lowered that small and medium enterprises (SMEs) are now getting on board with these digital tools.

More Data, More Risk

Businesses in the IT and software development industry perhaps deal with more data than many others, such as small restaurants and your local roofer. With so much data circulating within the organisation, much of which may be sensitive data, there is a persistent risk of costly data breaches.

Data breaches are not only becoming more costly around the world, but they’re also compromising an ever-greater number of sensitive data records and are happening with greater frequency as well.

Risk management software is thus a key component of your efforts to perform due diligence and to maintain compliance with regulatory and governmental bodies with regards to data privacy.

Data Security and Compliance

While the 2018 General Data Protection Regulation (GDPR) stands out as a modern example of a rigorous effort to protect private data in the European Union, Australia has had its own Privacy Act dating back to 1988.

Of course, the Privacy Act of 1988 likely could not have predicted the mass collection and sharing of data enabled by the internet and cloud computing, but it nevertheless has been amended and revised such that it now bears many similarities with the tight compliance necessary under the GDPR.

One key similarity between both regulations is that businesses must notify individuals in the event of a data breach. Phishing, gaps in cybersecurity, or compromised data from discarded IT assets can all cause costly data breaches, and as an IT or software development business it is your responsibility to notify all affected individuals as soon as possible.

Reputation in All Things Digital

It’s a serious blow to the reputation of any business if their sensitive data containing your personal information, for example, has been breached. Customers lose trust in the organisation, and many will begin to do business elsewhere. All of this affects your bottom line, making it a fundamental risk that should be avoided with professional risk reporting software and proper due diligence.

Software and IT companies, however, suffer far more from the effects of hacks or data breaches. After all, the main product or service offered is digital - if your business is offering a digital product/service and you cannot keep your customers’ data secure, why bother purchasing the product/service at all?

Data breaches are amongst the biggest risks facing most businesses today, not only IT and software development companies. That’s why a robust risk management solution is necessary. Consider trying out Risk Wizard for free today.

Risk Wizard

Risk Wizard is a sleek, modern risk management software solution which can help mitigate key risks such as data breaches, phishing, and cybersecurity risks for your organisation.

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