5 IT Risks That Could Really Impact Your Business: How to Mitigate Them

In over 25 years of consulting, I have worked with large and small organizations in the public and private sector. ?IT is a critical component of most businesses as it fuels processes and enables businesses to operate more efficiently. ?I have observed 5 IT risks that can really impact organizations of all sizes and sectors. ?

?Risk # 5 – Lack of Alignment between IT and Business

?The numbers don’t lie.? 80% of organizations lack strong IT-business alignment (Gartner,?2022).? This can show up in a number of ways, including:

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• Operational Complaints - Network outages, slow systems, email woes – IT inevitably faces criticism. Of course, some friction is natural, but systemic frustration points to deeper issues.
• Suboptimal Application Performance - Business applications get sluggish, manual processes drag down progress, and productivity tanks.
• Balance Between Agility and Sustainability - Business perceive IT as too slow and wants instant gratification, while IT prioritizes robust, scalable solutions. This "slow vs. fast" clash leads to shadow IT and frustration on both sides.
• Communication Gap - Tech jargon leaves business scratching their heads. Meanwhile, business goals sound alien to IT ears. This communication gap fuels misunderstandings.

?Risk # 4 – Finding and Retaining Skilled IT Personnel

?Attracting and retaining skilled IT professionals is more crucial than ever. ?The landscape has evolved from a time where senior roles were dominated by individuals with extensive experience in core technologies like Oracle, Java, SharePoint, and SAP. Today, despite a larger talent pool facilitated by diverse training avenues, the rapid pace of innovation has created a gap between eager newcomers ?and experienced professionals.? A few ways this risk shows itself are:

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• High Turnover Costs - As per a 2023 CompTIA study, the cost of IT employee turnover can be as high as 150% of their salary, including recruitment, training, and the loss of institutional knowledge.
• Cultural Alignment - Beyond technical skills, finding IT professionals who align with the organization's culture is essential for a harmonious work environment.
• Project Shipwrecks - ?Losing key personnel, especially during critical projects, can cause significant delays, increased costs, and loss of momentum.

?Risk # 3 – Outdated Systems and Business Processes

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IT leaders know it's crucial to recognize the urgency of digital transformation and the dangers of inertia. Outdated systems not only hinder operational efficiency but can expose organizations to security vulnerabilities and competitive disadvantages.? Risks include,

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• Speed and Reliability - Aging systems are prone to failure, leading to unplanned downtime and operational disruptions.
• ?Productivity Loss - Older systems often lack the speed and efficiency of modern alternatives, slowing down workflows and hampering integration capabilities.
• ?Competitive Edge - Staying current with technology advancements is vital for innovation and maintaining a competitive edge.

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Risk # 2 – Poor Data Management / Data Quality

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In the era of digital transformation, data is not just an asset; it's the lifeblood of your organization. Like oil, data's true value is unlocked only when it's refined - accurate, timely, reliable, and complete. ?The risks for poor data management are many,

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• Informed Decision-Making - Accurate data is the cornerstone of strategic decisions. Inconsistent data undermines the ability to make data-driven decisions.? Accurate data is also the fuel that drives all AI initiatives.?
• Data Integrity and Trust - Consistency across departments is vital. Inconsistencies erode trust and disrupt collaborative efforts.
• Data Silos - Data silos impede a holistic view of your organization. Integrated data is key to comprehensive insights.

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Risk # 1 – Cyber Security Threats

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Cyber Security is the biggest risk to most business because there is no other risk that can potentially put you out of business within months of a breach.? Staying on top of these threats is critical.? Risks are many including,

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• Phishing and Malware are very treacherous and get more sophisticated every year.? They trick employees into disclosing sensitive company information, can disable computer systems, or even spy on employees.? Ransomware can completely shut down a company’s operations until a ransom is paid.?
• Data Breaches results in compromising customer and employee data. It can severely? impact an organization’s reputation.? This happens to organizations of all sizes including giants like Uber and DOJ. ?
• Insider Threats are threats from within the organization.? Whether malicious or not, it is often the greatest threat.? What makes them very difficult to stop is that a company can do everything right and still have an employee or contractor open a link from a rogue email or fail to change a password and the organization is compromised.

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Solutions to Mitigate these risks

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While eliminating all risks is impossible, here are a few approaches to minimize their impact: ?

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Bridge the Gap:

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• Shared goals - Align IT and business leaders with clear communication and shared KPIs.
• Collaborative teams - Integrate IT and business teams on major projects for improved transparency.

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Attract and Develop Talent:

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• Competitive offers - Reward talent with competitive compensation, flexible work options, and development opportunities.
• Talent pipeline - Partner with educational institutions and offer internship programs.
• Continuous learning - Invest in ongoing training on cyber threats and emerging technologies.

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Optimize Systems and Data:

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• Modernize systems - Replace outdated solutions with modern versions that enhance speed, scalability, and integration.
• Embrace automation - Streamline processes, improve data accuracy, and reduce costs through automation.
• Data governance - Implement policies for data accuracy, availability, and security.
• Data stewards - Assign dedicated personnel for data quality and compliance within departments.
• Regular monitoring - Employ data quality tools for continuous monitoring and issue correction.

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Secure Your Environment:

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• Layered security - Utilize firewalls, intrusion detection, data encryption, MFA, and employee training.
• Monitor employee behavior - Watch for suspicious activity, including disgruntled social media posts.
• Cybersecurity plan - Establish a response plan for cyberattacks, ensuring everyone knows their role.

?Navigating the IT risk landscape requires a proactive and strategic approach. By addressing these key areas, businesses can not only mitigate risks but also leverage technology as a catalyst for growth and innovation. ?For a deeper dive into these insights and actionable strategies, https://velocitytechassoc.com/5-it-risks-that-could-cripple-your-business-how-to-mitigate-them

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Ben Williams, IT Executive and Entrepreneur

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