Managing Risks During Digital Acceleration

A lot has been said about how the COVID-19 pandemic has disrupted our usual ways of doing business, and one of the most recurrent things in those discussions is how the crisis has accelerated digital adoption across industries and business verticals. That phenomenon has been quite clear in the shifting consumer habits and the increased digital presence of brands, both results of the need to engage on a safe level.

Yet, I don’t feel like such an acceleration stems exclusively from the Coronavirus pandemic. Sure, the crisis has taken digital adoption to new speeds, but digital acceleration isn’t a new thing. In fact, most-tech driven businesses have been discussing it for years, which is why we already know its benefits - and challenges. 

That’s why I decided to share some suggestions on managing one of the most crucial challenges that accelerated digital adoption can have: the inherent risks. These suggestions come from years of learning and going through countless phases of digital transformation and acceleration, so I hope they’ll come in handy when dealing with your digitization process - especially during times like these!  

Why Risk Management Is Crucial

Before getting into the suggestion, I’d like to quickly share why risk management is important during a digital acceleration process. Whenever someone talks about this process, they often think about rapid software development and agile methodologies. The goal is simple - to integrate digital technologies as quickly as possible to meet the new demands, boost productivity, and provide value.

The transformation takes place as businesses go from more traditional tools and methods to digital-driven ones. That adoption seeks the many benefits that come with digital tools. For its part, the acceleration makes businesses focus on speed - and that’s when risk is most likely to appear. We’re all in a race to be the first in the market and, without proper care, the sacrifices we can make along the way can end up being costly - and risky. 

Keeping those risks in check is the only way to limit their potential impact, which can range from the inconsequential (a minor bug in the final software) to the catastrophic (a major vulnerability that allows attackers to capture sensitive data or a business decision that affects sales). 

Risk management becomes more crucial in these times, mainly because the acceleration in digital transformations is even bigger. Since a lot of companies are struggling to stay afloat during the crisis (and tech is an invaluable ally for most cases), they are investing heavily in digitally accelerating their processes. Unfortunately, they are doing so with a sense of urgency that ends up maximizing their risks. 

Given that digital acceleration is something they all need to keep up with new demands, changing habits, and varying industry landscapes, those companies need to keep risks at bay. Hence, the huge importance of risk management today. With that out of the way, let’s review what you can do to manage the risks in your digital acceleration process. 

Embrace The Basics

Since the pandemic disrupted our daily lives, we’re all in crisis mode, trying to mitigate the risks that appear left, right, and center. We’re several months into this new landscape, though, so it’s possible that you already developed some sort of response to the unique challenges that came with the Coronavirus.

If you haven’t, you are exposing yourself to a high-risk level and should tackle the basics to ensure your resilience in the short term. The first and most important thing you have to do is understand the importance of data. You can’t make informed decisions without data because you can’t be sure if the digital transformation you’re going through is right for your context or needs some adjustment.

So, you need to use data in your favor, assessing the risks you’re exposed to and adjusting your transformation accordingly. Thus, you need to be aware of your technical risks (those that stem from system vulnerabilities), operational risks (those that result from outdated or unadjusted workflows or a newly implemented remote team), and external risks (those that come from external factors, be them within your supply chain, your industry, or something larger, like government regulations). 

The circle isn’t complete when you assess your risks and adjust your processes but rather, when you accept that there will be other risks that you won’t be able to foresee. That has always been the case but those risks are increased during a pandemic. The best way to prepare for that is to be flexible enough to accommodate whatever changes come with those new risks. 

Monitor All New Tech Implementations

Digital acceleration will undoubtedly take you to new technologies, tools, platforms, and channels to engage both with your customers and your in-house staff. Zoom’s exponential growth is a prime example of that: a massive amount of its user base came right after the pandemic hit, when people and companies alike needed a quick and costless way to keep in touch. 

However, people were so quick to adopt it that they never stopped to consider the potential risks of rushing such an implementation. That’s fine, mainly because resorting to Zoom during the initial weeks of the pandemic was sort of an emergency measure. However, that move is a clear example of the risks that came with speeding up a transformation without a second thought. 

That’s why you now need to establish control protocols to ensure that all the new tech implementations are adequately monitored. That includes the maintenance, update, and upgrade of software as well as the inclusion of real-time security solutions that can provide a line of defense against cyberattacks, but that also can gather important data in real-time that to present the necessary insights about markets and customers. 

What’s more - developing employee-centric practices is also something you should consider when managing risks because the human link is always the weakest in the tech chain. What I’m saying is that you need more than just antimalware protection for your employees’ devices - you need solid policies that govern their work-related tasks. This will reduce the potential data leaks or the new vulnerabilities that may come from their side when they start using new tools, platforms, and devices. 

Invest On The Long Run

When you have developed a solid foundation and hit a comfortable stride on your daily basis, it’ll be time to provide a more sustainable framework for your digital acceleration process. Today, crisis mode might have you thinking about the short term, which is understandable. However, you need to think long-term as well, mainly because the digital changes you’re accelerating today will impact your organization as a whole.

Think about it. If you only accelerate your digital transformation in the direction pointed by your current needs, you may find yourself in a dead-end some months down the line. You need to keep the bigger picture in mind to take more confident steps towards a more robust digital ecosystem. Thus, you should think about scalability, security, future innovation, and value.

I’m pretty sure that all of those things will lead you to the implementation of cutting-edge technologies (mainly cloud computing and AI-powered algorithms). Still, another huge transformation will take place at the same time: the cultural change. Any digital acceleration can provide huge value but can also bring new risks, especially those related to the people. 

Understanding the changing sentiments around the developing culture that happens when you accelerate your digital transformation is key to create a company that isn’t just economically viable but also one that people love to work for. That’s never a minor thing, especially if you’re in an industry that calls for talent that is scarce. 

Managing risks has never been easy: it requires constant monitoring and assessment, ever-changing policies, and considerations of multiple nature. But as the pandemic has shown us all, doing all of that is the only way to stay ahead of the curve and open for business.