Definition of Technology Risk

Technology risk is a type of risk that arises from the use, ownership, operation, involvement, influence and adoption of technology within an organization. It is the potential for technology-related events to cause harm or loss to an organization. Technology risks can be caused by a variety of factors such as hardware and software failure, cyber security threats, data breaches, system outages, and other technological issues.

Examples of Technology Risk

One example of technology risk is the potential for a data breach. Data breaches occur when confidential information is accessed without authorization. This can lead to financial losses, reputational damage, and legal liabilities. Another example of technology risk is system outages. System outages can occur due to hardware or software failures, power outages, or malicious attacks. These outages can lead to lost productivity and revenue.

Managing Technology Risk

Organizations should take steps to manage their technology risks. This includes implementing appropriate security measures such as firewalls and antivirus software. Organizations should also have policies in place to ensure that confidential information is protected and access is restricted to authorized personnel only. Additionally, organizations should regularly test their systems for vulnerabilities and patch any identified weaknesses.