An increasing number of companies — from small startups to major corporations — are taking proactive measures to identify and mitigate risk in all areas of their business. These efforts are not in vain as a single incident can ultimately result in a business being forced to close its doors. This is especially true in the realm of IT risk management and governance. Just one data breach involving customer data can spark a public relations nightmare. It is estimated that 60% of small businesses that are targeted for a cyberattack close up shop within six months.
With so much at risk, it’s probably no surprise that we are seeing a movement toward more effective IT risk management. Fortunately, there are many benefits to be had for those who develop a solid IT risk management and mitigation strategy. Namely: compliance.
There is no shortage of regulatory bodies and new ones form routinely. Businesses in all sectors and industries are charged with achieving compliance, lest they face hefty fines and penalties. Some organizations even hold the power to close down companies that are non-compliant.
The use of IT risk management software empowers a business to achieve and maintain compliance — in addition to identifying, addressing, and minimizing risk, of course. But how will IT risk management software help in your risk mitigation efforts while simultaneously improving your compliance through new changes in technology?
What is Risk Management Software?
Generally speaking risk management software includes a variety of tools that empower an organization in its efforts to identify, manage and mitigate risk. See types of tools below:
- Risk Identification Tools
- Risk Assessment Tools
- Risk Monitoring
- Regulatory Compliance
- Analytics and Reporting
What Does IT Risk Management Software Do?
IT risk management software is designed with a variety of different technologies in mind, including networks, databases, cloud computing, and beyond. The goal is to identify, manage, track, avoid and mitigate risks that may arise in connection with a company’s digital and technology assets. This is achieved with a broad toolset that may include the following features and functionalities.
- Feeds with information on newly-identified cyber threats.
- Tools for identifying new and existing risks.
- Tools for evaluating and ranking the threat level for identified risks.
- Real-time monitoring and alerts for various IT systems.
- Analytics and metrics.
- Cloud backup and recovery tools.
- Auditing capabilities for databases and a range of other systems.
- Tools to track the progress of risk mitigation efforts.
- Checklists and action plans for risk response.
These are just a few of the tools you can expect to see in an IT risk management software system. This type of platform can be extremely effective for ensuring compliance too, particularly when you consider the monitoring and auditing capabilities.
Risk Management, the Cloud, and Actionable Insights on Emerging Threats
The best IT risk management software platforms have the ability to provide a real-time feed with data on all areas of a company’s IT infrastructure. When a threat is identified, the software can be configured to digitally “lock the doors” and send alerts to the company’s IT team so that they can take immediate action.
The cloud may prove to be the rockstar in this equation because it is cloud technology that allows for backups and disaster recovery. The best risk management software systems include backup and recovery features, and by leveraging cloud technology, business leaders can rest easy knowing that their information is safe and secure, regardless of what cyberattacks may come their way. This is also important for compliance. Countless companies must follow strict recordkeeping laws. Just imagine if all of those records and documents were involved in a ransomware scheme. The damage could be immeasurable.
Many well-built risk management platforms also include a news feed that provides information on newly-identified risks and threats. This is especially helpful for companies that wish to take proactive measures to avoid cyber threats and other risk factors.
How Does IT Risk Management Software Help With Data Management Regulatory Compliance?
In the world of data management and regulatory compliance, tracking changes and preserving an auditable record of those changes is absolutely essential. The reason: you may be considered non-compliant if you are unable to prove your compliance and the efforts surrounding that compliance. The best risk management software platforms include newer technologies such as blockchain and encrypted, highly-secure integrations to monitor and track data and associated data management practices.
Let’s examine one common point of concern when it comes to data management and regulatory compliance. The General Data Protection Regulation (GDPR) includes a “right to be forgotten” clause whereby an EU citizen can request to have all of their information removed from a database. In this situation, the company must prove that the individual’s data has been deleted from the system. Without a digital record and auditing capabilities, it is virtually impossible to prove this sort of thing.
The GDPR fines for non-compliance are steep: 4% of the prior year’s revenue or up to €20 million — whichever figure happens to be greater. Most would agree that compliance is critical when there are such tremendous fines in play. The right tools, such as those that are commonly included in an IT risk management software platform, will help you to keep a record of your compliance.
GDPR isn’t the only data management compliance concern. There is the California Consumer Protection Act (CCPA) which has very similar regulatory requirements as GDPR. Beyond this, there are also recordkeeping laws that impact companies in all business sectors. There is also the HIPAA, which affects the health care and insurance industries.
HIPAA carries stringent data management requirements that can be monitored with IT risk management software’s tracking and auditing tools. You preserve an auditable record of how and where data is stored or who accessed a specific file at a specific time. This information can be invaluable if an organization’s compliance is ever called into question.
Data management is just the tip of the iceberg when it comes to IT risk management. Achieving and maintaining regulatory compliance while simultaneously minimizing risks can be very complex. But this is where the expert team at iTech can assist. Our risk management and compliance specialists provide comprehensive and cost-effective risk management solutions to clients in all sectors and industries. Contact iTech today to discuss your company’s IT risk management strategy. We look forward to helping you find the best risk management solution for your organization’s unique needs.