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What are the top digital risks businesses should be aware of?

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BharatMalviya
What are the top digital risks businesses should be aware of?

Digital transformation strategies put pressure on organizations to digitalize their processes quickly and operations. Although this change may revolutionize their business, it has its own difficult challenges that they should be aware of.


Even though digital technologies are designed to increase the speed, efficiency, agility, and profitability of enterprises, recent developments have exposed unexpected dark sides of the digital world.


Whether organizations seek operational efficiency, contemporary business models, or improve operations, business executives must be aware of the unexpected downside of digital transformation.


· Workforce Risks: As businesses rely heavily on technology, the human element of threats will be important. Organizations face issues of data storage, network security and talent acquisition as much of the current workforce is hybrid or remote following the COVID-19 pandemic.


· Cloud Risks: As more organizations adopt the cloud, it introduces many new risks everyday. Architectural modifications, cloud implementation, deployment, most importantly, cloud management with current IT systems are among the frequently observed digital risks.


· Compliance Risks: Compliance risk is the obvious dark side of digital transformation. This is a known but unexpected dark side of digital that most businesses realize much later and have to suffer huge losses: data generation and deployment of new technologies to meet compliance requirements.


· Automation Risks: Businesses are always looking for ways to benefit from automation. But, apart from promoting scalability and flexibility, automation also has some drawbacks.


Many automation solutions may introduce software incompatibilities or add unnecessary operational complexity. Additionally, more automation means more vulnerabilities that increase the likelihood of data breaches. There may also be multiple unexpected risks regarding artificial intelligence and machine learning automation.


· Data Privacy Risks: Data privacy risks are increasing as a byproduct of digital transformation. Businesses nowadays know the threats, yet many fail to take advantage of digital capabilities to protect their data. Organizations often suffer serious consequences from data breaches in terms of reputation, finances, legitimacy, regulatory compliance and, most importantly, customer trust.


Read Full Article: Beware! Digital Transformation Has a Dark Side Too



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