Using Technology to Mitigate Risk | FIRST, VERIFY

Aug 10, 2021

Every entrepreneur and business leader are looking to grab any technology-driven advantage they can as they adapt to new ways of working, managing employees, and serving customers. At the same time, they are trying to manage risk — and the same digital initiatives that create new opportunities can also lead to risks such as security breaches, regulatory compliance failures, and other setbacks. The result is an ongoing conflict between the need to innovate and the need to mitigate risk.


Mitigating risks is one of the most important jobs that management has to deal with on daily basis. With efficient and smart use of the technology of today, the everyday risks of the business can be greatly reduced. 


Here are a few ways that technology can help mitigate risks:


Security:


Security is an extremely important aspect of a business this is because almost all businesses have sensitive information and failure to keep them secure could result in disastrous events if the wrong people get their hands on it. Losing a file from the cabinet, or a floppy disc, or even a stolen laptop containing crucial information can make the owners go berserk.



But now, thanks to technology, it is ensured that only relevant and right people can access the information they need. Now there are unique passwords and codes to keep sensitive information safe. Even facial recognition can prevent the theft of data leading to operational risks. Technology has made it tough for wrongdoers to indulge in malicious behavior. The fear of being tracked and getting caught is pervading.


Access:


Access is another facet that is often misused and is easily hacked. Some people need to have instant access to important information so that crucial decisions can be made right away. These decisions affect the well-being of the company. This access needs to be limited to certain members of the management team only as they are responsible for carrying out the smooth operations of the business.


Numerous software and cloud-based technology allow the management to access real-time information right away from anywhere. The technology ensures that all the information is monitored tightly.


Profit Loss:


Generating sales and making profits is the main goal of a business that holds the entire process together. With the usage of robust technology systems, the areas of concern can be properly focused on.


Using the right technological solutions in office management software as well as other activities allows businesses to know where the resources and finance are being utilized and a proper picture of profit and loss can be attained. Irregularities in record-keeping indicate fraudulent activities by vendors, employees, or both.



Efficient Use of Time:


Time is an important element in every walk of life. And when important business decisions have to be made, time becomes paramount. That's why a business demands that all of the employees use their time productively for organizational growth. A profitable business asks its employees to direct their talents and energies into tasks that bring something to the business.


The right kind of technological solution will act as a watchdog to monitor transparency within the business operations, process streamlining, and efficient use of employee energy.


Expense Management:


Businesses have to follow a budget closely so to maximize their profits. They cannot be callous about cost and follow the saying- 'a penny saved, is a penny earned'. When there is no communication between departments or lack of proper filing, paperwork, or recordkeeping mistakes can occur resulting in false numbers; with the help of technology like using an asset management system, the process goes out without a hitch giving clarity on how much expenses are occurring and where.


All organizations face uncertainty. The effect this uncertainty has on an organization's objectives is referred to as "risk." The challenge for management is to determine how much uncertainty or risk to accept and how to manage it to an acceptable level. Technology has been a blessing for all. It monitors, reviews, guards any loss of data, unnecessary expenses, false information, and a myriad of other aspects.


Technology not only finds the culprits in case of wrongdoing harming a business, but it also allows any issues to be identified early and address them immediately.


FIRST, VERIFY is a one stop solution for companies across industries to mitigate risk be helping develop and execute a strong risk mitigation strategy and a robust technological solution. Read more about our risk mitigation services here.

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