What is technology risk?
Technology can be used to mitigate operational risks. For example, automated procedures are generally less prone to error than manual procedures. However, technology introduces its own risks. The Basel Committee recommends an integrated approach to identifying, measuring, monitoring and managing technology risks. Technology risk management tools are similar to those suggested for operational risk management.
Example of Technology Risk:
The most common technology risk include
- Security and Privacy
- Information technology operations.
- Business systems control and effectiveness.
- Business continuity management.
- Information system testing.
- Reliability and performance management.
- Information technology asset management.
- Project risk management.
Why is technology risk management important?
1.The strategic importance of technology to business:
- Technology is an enabler of essential business functions.
- Financial assets are essentially information assets.
2. The growing threat of cybercrime.
3. Legal and regulatory requirements for safeguarding customer information.