What is your approach to managing risk in a technology-driven environment? Can you provide an example of how you've mitigated a specific technology risk?

Question

In today's fast-paced, technology-driven environment, managing risk is more critical than ever. This article explores exclusive insights from top industry leaders, specifically CEOs and Founders, on their approaches to risk management. From conducting regular risk assessments to integrating risk management into business strategy, these experts share twenty-four invaluable strategies. Read on to discover how to leverage automation to reduce manual errors and why integrating risk management into business strategy is paramount.

Brett Ungashick · Answer

In a technology-driven environment, my approach to managing risk revolves around proactive monitoring, regular audits, and implementing a robust incident-response plan. I prioritize identifying potential vulnerabilities early, whether they stem from outdated systems, cybersecurity threats, or operational inefficiencies, and take preemptive measures to address them.
For instance, we once faced a significant risk due to a legacy software system that was no longer receiving security updates, leaving us vulnerable to potential breaches. To mitigate this risk, I led an initiative to transition to a modern, cloud-based platform. The process involved conducting a comprehensive risk assessment, training the team on the new system, and establishing a timeline to ensure a smooth migration without disrupting day-to-day operations.
By implementing the cloud-based solution, we enhanced our security posture with automatic updates, improved data redundancy, and real-time threat detection. Additionally, the transition allowed us to streamline processes and reduce downtime, ultimately improving overall efficiency and client trust. This experience reinforced the importance of staying ahead of technological advancements and being prepared to adapt swiftly to mitigate risks effectively.
For others managing risks in technology-driven environments, I recommend regularly assessing vulnerabilities, investing in up-to-date solutions, and fostering a culture of continuous learning and adaptability. Proactive measures not only reduce risk but also ensure the organization remains resilient in an ever-changing technological landscape.

Aseem Jha · Answer

Safeguarding Our Tech-Driven Future with Proactive and Multifaceted Risk Management
As the founder, my approach to managing risk in a technology-driven environment is proactive and multifaceted. I prioritize establishing robust cybersecurity measures and fostering a culture of awareness among my team.
For instance, when we transitioned to a cloud-based encrypted system for file-sharing, I recognized the potential risks associated with data breaches and unauthorized access.
To mitigate these risks, I implemented a comprehensive training program that educated our employees on best practices for data security, including recognizing phishing attempts and maintaining strong passwords.
Additionally, I conducted regular audits of our systems and worked closely with cybersecurity experts to ensure our protocols were up-to-date.
This diligence paid off when we detected an unusual login attempt early on; thanks to our monitoring tools and training, we swiftly identified and blocked the threat before any data could be compromised.
This experience reinforced the importance of being proactive in risk management, ensuring that technology enhances our operations rather than exposes us to vulnerabilities.
Overall, my commitment to risk management has not only safeguarded our sensitive information but also instilled confidence in our clients regarding our commitment to security.

Alari Aho · Answer

My approach includes "risk redundancy," where we create multiple backups and alternative paths to minimize the impact of any single failure. This way, if one system encounters an issue, we have another layer in place to catch and handle it seamlessly. It's like building a safety net so that potential risks don't disrupt our operations or user experience.
We faced a potential data security risk when implementing new integrations, so we conducted an extensive security audit and added additional encryption layers to safeguard user data. This extra level of encryption allowed us to proceed with integrations confidently, knowing our users' information was secure. By prioritizing security, we avoided potential data vulnerabilities without stalling progress.

Shehar Yar · Answer

In managing risk within a technology-driven environment, my approach centers on proactive risk assessment, layered security measures, and ongoing education. At Software House, we start by identifying potential risks early in project planning and development stages, ensuring we have the right security protocols and risk-mitigation strategies in place before a product goes live. This means staying updated with the latest in cybersecurity and data privacy regulations, and ensuring that our team is aligned on best practices through regular training and drills. 
A specific example of risk mitigation involved a recent mobile app project where we identified the risk of data breaches due to sensitive user data. To address this, we implemented encryption protocols, multi-factor authentication, and role-based access controls, allowing only authorized team members to access certain levels of data. We also conducted penetration tests and routine audits, ensuring any vulnerabilities were caught and addressed swiftly. By taking these steps, we not only protected our clients' data but also reinforced trust with our users, making security an integral part of our service delivery and risk management framework.

Steve Robinson · Answer

As a senior technical manager at Go Technology Group, our approach to managing risk in a technology-driven environment is rooted in robust disaster recovery and continuous-monitoring strategies, which are critical to safeguarding our clients' operations. Our managed IT services encompass a tailored disaster recovery (DR) plan designed to restore essential IT functions swiftly in the event of a disruption, minimizing downtime and ensuring business continuity. Additionally, our 24/7 cybersecurity monitoring detects and addresses anomalies in real time, significantly reducing potential impacts from cyber threats.
For example, we recently mitigated a significant technology risk for a client when they encountered unexpected network anomalies. Our proactive IT consulting led to the implementation of automated incident-response protocols, allowing us to contain and resolve the issue without affecting the client's operations. This incident highlights our commitment to offering proactive risk-management solutions that protect our clients' systems and data with minimal disruption.

Erik Wright · Answer

In my real-estate tech operations, I've learned to take a proactive approach by regularly backing up our property databases and using multi-factor authentication for all team access. Last year, we had a close call when our lead generation system got hit with a ransomware attempt, but thanks to our daily backups and isolated testing environment, we were back up within hours with zero data loss. I always tell my team that it's better to spend time preventing issues up front than dealing with disasters later – that's why we now run monthly security audits and keep our systems deliberately simple.

Jonathan Gerber · Answer

Managing over $1.2 billion in client assets taught me that technology risks aren't just about cybersecurity—they're about having redundant systems and backup processes for when things inevitably go wrong. When our main portfolio-management system went down last year, we seamlessly switched to our backup system within minutes, something I set up after a close call in 2021 that made me realize we needed better contingency plans.

Trevor Bailey · Answer

As a fintech founder working with 1099 contractors, I learned the hard way when we had a minor data leak that scared me straight—now I triple-check our security by running weekly vulnerability scans and requiring two-factor authentication for all user accounts. I also keep our platform risks low by having a dedicated test environment where we trial all updates before pushing them live, which has saved us from several potential issues that could have impacted our users' financial data.

Adam Garcia · Answer

As someone running a financial website, I've learned that regular testing of our security systems and having multiple backups is crucial—last month, we actually caught and blocked a potential data breach thanks to our daily monitoring routine. I always tell my team it's better to spend an extra hour double-checking our security protocols than deal with a crisis later, so we run comprehensive systems checks every morning before market open.

Joshua Odmark · Answer

As a CIO who's been burned before, I now follow a 'trust-but-verify' approach, running weekly penetration tests and maintaining redundant backups for all critical systems. Last month, this saved us when we caught a potential data breach early, giving us time to patch vulnerabilities before any damage occurred.

Brandon Shearin · Answer

In our house-flipping business, I've seen technology hiccups cost deals, so I've developed a three-tier backup system for our lead-generation data that's saved us countless times. Just last week, when our main CRM crashed, we didn't lose a single lead thanks to our backup system, and I always recommend fellow investors invest in redundant systems rather than learning this lesson the hard way.

Victor Santoro · Answer

In managing risk in a technology-driven environment, I leverage my background in diagnostic imaging and AI to anticipate and adapt to potential threats. At Profit Leap, we developed an AI business advisor, Huxley, that integrates predictive analytics to assess technological risks and optimize small-business operations. This proactive use of AI not only improves decision-making but mitigates risks like tech obsolescence.
A specific example is when we faced a potential data security challenge. We implemented advanced AI-powered cybersecurity measures to protect client data. This move reduced our risk exposure by 30% and increased client trust, which led to a year-over-year revenue increase of over 50%. My approach emphasizes blending AI insights with strategic planning to stay agile and innovative in a tech-heavy business landscape.

Konrad Martin · Answer

At Tech Advisors, we believe that effective technology risk management starts with a proactive and clear-eyed view of potential vulnerabilities in IT infrastructure. In my experience, regular risk assessments make all the difference. We focus on identifying potential issues, like outdated software, that can slow down systems and create operational bottlenecks. This early approach lets us address compatibility issues before they disrupt the client's work. For example, we once encountered a company struggling with frequent system downtimes due to outdated applications. After conducting a comprehensive risk assessment, we updated their software and streamlined their IT processes, resulting in smoother and more reliable operations.
Real-time monitoring is essential to keep business data safe, which is why we prioritize implementing live-tracking tools for our clients. These tools help detect threats and track data in real time, reducing delays in addressing incidents. I've found that real-time data is crucial during cyber incidents; it provides an accurate picture of what's happening, allowing for quicker decision-making. In one instance, we were able to respond immediately to a phishing attack at a real estate firm, catching it before any client data was compromised. Our real-time monitoring not only protected the firm but also strengthened their client relationships by maintaining data integrity.
Assigning clear roles and responsibilities is also a cornerstone of our risk management strategy. Every team member at Tech Advisors knows their part in keeping our clients secure, which speeds up response times and helps manage risks effectively. For example, during a server issue that could have resulted in significant downtime, each team member was ready with specific tasks, from running diagnostics to communicating with the client about next steps. This organized response minimized downtime, kept the client informed, and protected their business continuity.

Chase Mckee · Answer

Managing risk in a technology-driven environment involves both proactive planning and real-time adjustments. At Rocket Alumni Solutions, we faced a significant challenge with payment processing due to a high rate of chargebacks. By implementing a new fraud-detection system and improving transaction verification processes, we successfully reduced chargebacks by 50%. This not only mitigated financial risk but also boosted customer satisfaction with smoother payment experiences.
Another example of risk management at our company was addressing IT stability while integrating innovative solutions. We adopted a phased approach to technology upgrades, rigorously testing new solutions in controlled environments before full deployment. This strategy ensured operational continuity while allowing us to integrate cutting-edge technologies, ultimately enhancing efficiency by 15%. Through these experiences, I've learned that balancing innovation with security can help steer the tech landscape effectively. In a technology-driven environment, managing risk is all about embracing data security and scalability. At Rocket Alumni Solutions, we faced a significant technology risk with our payment processing system, which was experiencing a high rate of chargebacks. By implementing a fraud-detection system and tightening our transaction verification processes, we reduced chargebacks by 50% and improved customer satisfaction. This not only secured our revenue but also improved trust with clients.
Another key strategy involves balancing innovation with IT stability. We adopted a phased approach to technology upgrades, ensuring stability while integrating cutting-edge solutions. This phased testing allowed us to increase operational efficiency by 15% without compromising service quality. Using controlled environments for testing helped us mitigate potential technology risks before full deployment.
Additionally, I used growth-hacking techniques to rapidly scale our client base without external funding. By leveraging SEO and fast-loading landing pages, we achieved first-page rankings for key domains, generating inbound leads that significantly offset any risk of technology obsolescence. It's crucial to innovate cautiously and ensure any technological changes align with long-term business goals.

Praveen Kumar · Answer

When managing digital marketing campaigns across multiple platforms, I've learned that having backup data systems and redundant campaign-tracking tools is absolutely crucial. After losing some client data during a server crash in 2022, we implemented a triple-backup system with real-time syncing, which has saved us countless headaches and maintained our clients' trust during technical hiccups.

Paul Sher · Answer

Regular system audits and backup protocols are essential to protecting our clients' data. I discovered this firsthand when we faced a potential security breach at FuseBase last spring. I immediately implemented a triple-layer verification system and created emergency response procedures, which helped us prevent any data loss and actually strengthened our clients' trust in our platform.

Christian Marin · Answer

I learned about risk management the hard way when a critical game-development build was corrupted due to an unexpected server failure during my time leading a dev team. I immediately implemented a three-tier backup system and established strict version-control protocols that have prevented similar issues from occurring since then. As a project manager in game development, I've found that conducting weekly risk-assessment meetings and maintaining a living document of potential technical challenges has been invaluable for preventing problems before they arise.

Michael Sumner · Answer

Managing risk in a technology-driven environment requires a proactive and transparent approach. As a seasoned technologist, I've learned that risk mitigation begins with acknowledging potential vulnerabilities and openly discussing them with the team. This fosters a culture of trust, where everyone feels empowered to speak up about potential risks without fear of retribution. By doing so, we can identify and address issues early on, reducing the likelihood of catastrophic failures.
One example that comes to mind is when I was working with a Fortune 100 company on a high-profile project. During a critical phase, our team discovered a potential security vulnerability in the system. Instead of sweeping it under the rug, we immediately brought it to the attention of the project stakeholders and worked together to develop a contingency plan. By being transparent and proactive, we were able to mitigate the risk and deliver the project on time, without compromising security. This experience taught me the importance of cultivating a culture of open communication and collaboration, where risk mitigation is a shared responsibility.

Joshua Uebergang · Answer

Working with Shopify stores has taught me that payment-gateway diversification is crucial—we learned this the hard way when Stripe went down during Black Friday for one of our clients. We immediately switched to our backup payment processor, which helped us save about 70% of potential lost sales during that 2-hour window. I now make it standard practice to set up at least two payment gateways for all our clients and test them monthly, especially before major shopping events.

Justin McKelvey · Answer

In a technology-driven environment, managing risk is about leveraging data-driven strategies and maintaining flexibility to adapt to market changes. At SuperDupr, we've pioneered a methodology that emphasizes automation to reduce manual errors and improve operational efficiency.
By automating processes, we not only save time and money but also mitigate the risk of human error, which is a significant concern in tech-driven projects.
One specific example involves our work with Goodnight Law, where we encountered frequent technical issues affecting their online presence. We addressed this by updating their visual design for better user engagement and integrating automated email systems with follow-ups. This approach streamlined their operations, improved client satisfaction, and reduced the risk of technical failures affecting client relations.
Another example is our NFT projects, where market volatility poses a risk. We minimize this by fostering strategic partnerships with blockchain experts, ensuring we're at the forefront of emerging technology trends. This proactive approach to risk management allows us to deliver reliable and cutting-edge solutions to our clients.

Elsie Day · Answer

A systemic approach is needed when managing risk in a technology-driven environment, particularly when dealing with the challenge of technical debt, where legacy systems and outdated software accumulate vulnerabilities. These systems are often difficult to address without a significant investment in new technology, which can be difficult due to the risk of business disruptions and budget constraints.I find an approach of establishing what I term a "Remediation Factory" addresses these issues quickly and in a systematic way that enterprises can work with. A "Remediation Factory" simply describes the establishment of a repeating and quick-cycling business process that assesses and treats the technical debt that has been found.An example of this approach was applied through the management of a portfolio of legacy applications on unsupported operating systems. Instead of advocating for a complete technological replacement (which would have been overly disruptive and prohibitively expensive), I established and ran a "Remediation Factory." This included:1. Risk Assessment Phase: applications are put through the factory "funnel" in batches and risk assessed for their business criticality, vulnerability exposure, and overall risk.2. Options Analysis: depending on the level of risk assessed in step 1, a mitigation strategy is selected. Multiple mitigation strategies should exist within a framework ranging from full operating system upgrade, application replacement, application upgrade, to implementing compensating controls and even "do nothing" (risk acceptance).3. Control Implementation: whatever the risk mitigation strategy was decided in step 2, implement that control.4. Rinse and Repeat: restart the process, selecting a new batch of applications and running the factory again until all in-scope applications have been handled.This approach has proved successful many times as it significantly reduces risk exposure, provides clear metrics for progress tracking, allows for business continuity, and creates a repeatable process for handling similar challenges.The key takeaway was that effective risk management isn't always about implementing a perfect new solution but rather creating a structured process that systematically reduces risk while understanding the real-world constraints. This balanced approach to risk management in technology-driven environments helps maintain a high level of security while ensuring business operations remain uninterrupted.

Patric Edwards · Answer

In a technology-driven environment, my approach to risk management involves continuous monitoring, thorough risk assessments, and implementing preventive measures such as regular security audits and automated alerts.
For example, when rolling out a cloud-based platform, we mitigated data-privacy risks by enforcing strict access controls and conducting regular vulnerability scans. This proactive approach helped us identify and address potential threats early, ensuring data integrity and compliance with privacy regulations.

Steve Payerle · Answer

Managing risk in a technology-driven environment requires a strategic approach grounded in comprehensive planning and proactive action. At Next Level Technologies, I've developed IT strategies that emphasize identifying potential vulnerabilities before they become threats. One effective method is conducting regular security audits and risk assessments, which help pinpoint hardware and software misconfigurations that could expose businesses to cyber threats.
For instance, when we expanded our operations to Charleston, WV, we faced potential risks of data breaches during the transition. To mitigate this, we implemented strict data-isolation techniques and encrypted all sensitive information during the move, which ensured no data was compromised. We also employed multi-factor authentication across all systems to safeguard against unauthorized access. This strategic approach enabled us to secure our infrastructure while maintaining operational efficiency.
A key aspect of our risk-management strategy is emphasizing employee education. Many breaches occur due to human error, so we prioritize ongoing training to educate our team and clients about the latest phishing tactics. This not only minimizes risk but also empowers our clients to maintain secure operations independently, reinforcing our commitment to service excellence.

Sheraz Ali · Answer

Managing risk in a technology-driven environment requires a proactive and systematic approach. One effective strategy is to implement a robust risk-assessment framework that continuously identifies, analyzes, and mitigates potential technology risks. For instance, in a previous role, we faced the risk of data breaches due to outdated software systems. To address this, we conducted a comprehensive audit of our technology stack, identifying vulnerable areas that could be exploited.
We then prioritized upgrading these systems and implemented regular security updates and patches. Additionally, we established a continuous monitoring system that leveraged advanced analytics to detect unusual activities in real time. This proactive approach not only reduced our vulnerability to cyber threats but also enhanced our overall operational resilience.
The key takeaway from this experience is the importance of integrating technology risk management into the broader business strategy. By aligning risk-mitigation efforts with organizational goals, companies can better protect their assets while fostering innovation.

How to Approach Risk Management in Technology: 24 Tips from a CTO

How to Approach Risk Management in Technology: 24 Tips from a CTO

Proactively Monitor and Migrate Legacy Systems

Educate Employees on Data Security

Create Multiple Backups and Redundant Systems

Implement Layered Security and Ongoing Education

Utilize Disaster Recovery and Continuous Monitoring

Regularly Backup Databases and Use MFA

Use Redundant Systems for Asset Management

Run Weekly Vulnerability Scans and Use 2FA

Test Security Systems and Maintain Backups

Trust But Verify with Penetration Tests

Develop Three-Tier Backup Systems

Leverage AI for Risk Mitigation

Conduct Regular Risk Assessments

Implement Fraud Detection and Phased Upgrades

Use Backup Data Systems for Campaigns

Implement Triple-Layer Verification Systems

Conduct Weekly Risk-Assessment Meetings

Foster Open Communication for Risk Mitigation

Diversify Payment Gateways for Reliability

Leverage Automation to Reduce Manual Errors

Establish a Remediation Factory for Technical Debt

Enforce Access Controls and Vulnerability Scans

Implement Multi-Factor Authentication

Integrate Risk Management into Business Strategy