Digital transformation creates tremendous business opportunities along with new forms of digital risk. Digital risk refers to unwanted and often unexpected outcomes stemming from digital transformation and the adoption of related technologies. Cyber security risk, third-party risk, business continuity risk, data privacy risk and other forms of digital risk add to the uncertainty of achieving business objectives. Strategic business objectives including new operational efficiencies, business models and customer experiences are the driving force behind digital initiatives such as big data analytics, IoT and AI. But these initiatives have spawned eight types of digital risk that every organization must learn to manage.
Cybersecurity- Risk of cyber-attacks, especially in the context of a growing attack surface and an increase in sophistication of attacks.
Workforce/Talent- Risk related to the dynamic nature of today’s workforce and the gig economy.
Cloud- Risk due to changes in architecture, implementation, deployment and/or management of new digital business operations or IT systems.
Compliance- Risks related to compliance requirements driven by new technology and the scope of data being created.
Third Party Risk- Inherited risk related to external parties.
Process Automation- Risk related to changes in processes from automation.
Resiliency- Risk to availability of business operations, especially after disruption.
Data Privacy- Risks related to the ability to protect personal information.