Risk reduction is a concern for global companies, but some businesses may be compromising performance and productivity by hanging on to outdated security strategies, according to a recent report from CEB, a member-based advisory company.
The report notes that modern work environments are usually collaborative, meaning they require a large transfer of information. Many companies have restrictive information security policies, which can inhibit the business from maximizing its profits. CEB suggests companies need to shift from a risk reduction approach to a risk management focus.
Most risk managers mistakenly believe their role is to reduce risk; however, the primary goal of information risk management must evolve from risk reduction to maximizing the business value of information. Risk management functions, including information security, legal and enterprise risk management, must work jointly to define the scope to be managed and the set of activities necessary for business leaders to successfully share responsibility.
The study revealed large companies could suffer from as much as $20 million worth of lost profits per year due to their information security policies.
ERP can facilitate information risk management
Eighty-one percent of executives surveyed said new uses of information were crucial to the growth of their businesses, and an astounding 93 percent of employees confessed they had violated information security policies because the restrictions prevented them from doing their jobs effectively. Companies need to find a balance between risk reduction and accessibility of information. Implementing an ERP system can manage risk and replace outdated systems, making data transfer and information accessibility easier.
Successful businesses use ERP software to solve some of the information security problems. Employees can access the data they need to perform the functions of their jobs, and ERP can help companies increase productivity and prevent them from losing profits.
If you are concerned about your business’ risk, consider investing in an ERP system. We provide ERP software for every business need. Contact us today to find out which ERP solution would be the right fit for your company!