Digital Transformation Risks And How To Manage It

Today, we see most businesses apply digital information. Unfortunately, we have also seen digital transformation risks.

What are these risks? How can we manage them?


Studies show that more than half of business owners adapt to digital technologies. It includes AI, IoT, blockchain, and cloud computing.

But, there is a dark side to digital transformation. If not managed, it can cause data breaches. Also, security incidents can happen.

As a consequence, you can lose profit and ruin your image. You can even lose your customers’ trust.

So, we need to find out the common digital transformation risks. That way, we can prevent them from happening.

Common Types of Digital Transformation Risks

Take note of these eight common digital transformation risks.

  1. Cyber risks. DX promotes using devices. And some of these are connected to the Internet. Thus, these devices are at risk of a cyber-attack.
  2. Cloud. Applying cloud computing improves the storing of data. But, there is a growing risk in your cloud architecture.
  3. Workforce. Having a digital transformation can improve the workflow a lot. It also automizes tasks, making it efficient. But, there are identity and threat-monitoring issues.
  4. Compliance. Some regulations from the government have risk challenges. Thus, your compliance is at stake.
  5. Third-party. Some digital technologies need third-party providers. But if it is not secure, their risks can be your risks, too.
  6. Strategies. If you encounter a security incident, your strategies and trade secrets are at risk. It is also related to your customer experience and reputation.
  7. Automated processes. In digital transformation, you automate some tasks and processes. But shifting from manual to automatic can result in unexpected risks. It can even affect your business or society.
  8. Data privacy. If information is not secured, personal data can leak. So, it can damage your reputation and trust.

Yet, there are other competitive risks in digital transformation. These include:

  • Missed opportunities
  • Outdated technologies
  • Failure to get data analytics

Digital Transformation Risks Management

To make proper risk management, you need these three factors:

  1. Visibility – knowing how and who handles your data
  2. Insights – accessing information that gives you an understanding of incidents and results
  3. Action – how fast how effective you respond to risks

Moreover, these three factors should be applied in three areas:

  1. Operations. Having a security team helps you protect your assets. Also, it can keep hackers away.
  2. Management. Having risk management ready is important. It helps you comply with policies. Also, you can manage business risks from other providers.
  3. Access. Knowing the people behind user access can also help you. It secures your information. Also, it limits the people who can see it.


In the actual world, it is difficult to manage digital transformation risks. Each day, there are new risks. But with proper management and consideration, you can do it.

Besides, successful digital transformation helps you improve your business. You can get new opportunities. And it enhances your edge over your competitors.

Thus, do not let your fear of risk hold you back. In fact, not transforming may be the biggest risk of all.

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