The guidelines set aim to benefit digital finance customers, providers, and market ecosystems in managing opportunities and risks associated with digital transformation and digitalization. While the benefits of accelerating digital adoption are clear, the diversity of contractors and platforms across the value chain results in data being generated in a dispersed way, increasing the volume of information handled and creating risks associated with system interdependencies and poor integration. Firms also need to be prepared for when things to wrong and build resilience to be able to withstand, absorb, and recover from technology-related risks.
Simply put, digital disruption is the effect of digital technologies and business models on your organization’s current value proposition and its resulting market position. Leading digital transformation in your business can create new strategies, adopt new technologies, and develop new customer experiences with your digital programs. Encrypting data in each of these environments results in the creation of islands of encryption and diverse key management platforms which increases complexity, costs, and the risk of data loss.
Procurement and the supply chain bring the power of digital at the macro and micro level of every element of your process. Technology-driven disruption is driving new urgency around digital business transformation initiatives in every industry. Digital transformation is the method a business uses to modernize itself by replacing or updating clunky mechanical or human processes with new digital workflows and systems throughout their entire organization.
As businesses look to operationalize and leverage increasing volumes of data, there is a need to look to more advanced technologies, like machine learning, to help find the answers to some of businesses’ toughest challenges. Digital risk and the need to build digital trust should be treated as your enterprise risk for which boards need to develop a clear risk appetite to suit their specific business circumstances, as well as an associated action plan. Managers need to seek frequent assurance that risks are being appropriately managed and understand how digital-native enterprises are using platform business models and associated strategies.
Today, there is a more intense focus on risk management, creating new demands for oversight and business continuity plans. When implemented effectively and practically, data-driven digital transformation enables more effective spend management and mitigation of risk, aligning ethical values with business practices and ultimately saving both money and time. AI in particular has the potential to take a lofty and pervasive role in the future of digital transformation.
The purpose of risk management is to help those responsible for making decisions, as well as to determine the digital impact of business models and support means. Process automation reduces staffing demands, improves accuracy, and increases delivery speeds with automation technologies that manage data, verify requester identify, and maintain request logs. Developing and managing the transformation implies adopting the right steps throughout the journey beyond traditional silos.
The management of risk is a capability required across your organization, with employees analyzing, mitigating, or escalating potential areas of risk and reducing the instances of issues. A background in emerging business and technology trends, digital business model transformation, enterprise apps strategy, technology selection, expanding infrastructure and increased complexity, cloud mobility, and the internet of things helps understand just what impacts change cycles.
Before you launch a formal digital transformation project, make sure you have the key elements in place to maximize success. Tools like a security information and event management platform (SIEM) provides actionable insights from advanced analytics and data forensics to mitigate risks and speed up your incident response. With the right analytics, tools, and risk analysts in place, the unprecedented and constantly growing amount of data can enable organizations to better balance efforts to react and mitigate risks in their efforts to enhance and grow trust.
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