Risk Management Services - Technology Risk Management
Technology risk or technical risk specifically refers to the potential for financial losses, operational disruptions, and damage to an organization's reputation due to failures or security breaches within its technology systems. NOXMON provides strategic technology risk management that aligns security initiatives with business objectives.
Understanding Technology Risk
Technology risk arises from various sources, including legacy systems, cyber-attacks, software malfunctions, hardware failures, and data integrity issues, all of which directly impact business operations and strategic outcomes.
NOXMON's technology risk management approach combines quantitative risk analysis with practical risk mitigation strategies. We help organizations develop risk models that quantify potential impacts using advanced methodologies including Monte Carlo simulations, FAIR (Factor Analysis of Information Risk), and statistical modeling techniques.
Effective technology risk management integrates the identification, assessment, and prioritization of these risks, employing strategic mitigation and response strategies. It protects the organization's digital assets, ensures regulatory compliance, and aligns IT performance with business goals.
Types of Technology Risks
Core Technology Risks
- Software Risks. Bugs, security vulnerabilities, and compatibility issues that can lead to system failures and data breaches
- Hardware Risks. Physical component failures including servers, workstations, and networking equipment
- Technology Obsolescence Risks. Outdated technology that increases vulnerability to breaches, downtimes, and system crashes
- Cybersecurity Risks. Threats from hacking, malware, ransomware, and phishing attacks that compromise sensitive data
Operational & Strategic Risks
- Project Management Risks. Poor planning, inadequate resource allocation, and scope creep leading to project failures
- Compliance & Regulatory Risks. Failure to comply with industry regulations resulting in legal penalties and reputational damage
- Supply Chain Risks. Dependencies on external suppliers that can lead to production delays and increased costs
- Innovation Risks. Challenges from adopting new technologies including integration issues and market uncertainties
Real-World Technology Risk Examples
Software Failure: Knight Capital Group (2012)
A faulty deployment of trading algorithms caused unintended orders, resulting in a $440 million loss within minutes. This underscores the critical importance of rigorous software testing and deployment protocols.
Hardware Malfunction: British Airways IT Outage (2017)
A power supply failure led to the cancellation of over 670 flights, resulting in £80 million in losses and highlighting the need for robust disaster recovery planning.
Cybersecurity Threat: WannaCry Ransomware (2017)
The attack affected over 200,000 computers across 150 countries, including critical healthcare systems, emphasizing the need for regular software updates and comprehensive cybersecurity measures.
Supply Chain Disruption: Toyota Airbag Recall (2016)
Faulty airbag inflators from supplier Takata forced millions of vehicle recalls, highlighting supply chain dependency risks and the importance of quality assurance practices.
Impact of Unmanaged Technology Risks
Operational Disruption
Unplanned downtime significantly disrupting business operations and productivity.
Financial Impact
Increased costs due to emergency repairs, data recovery, and legal liabilities.
Reputation Damage
Loss of customer trust and competitive edge due to compromised service quality.
Strategic Setbacks
Project failures or delays impacting overall strategic objectives and growth plans.
Our Technology Risk Management Services
Risk Assessment & Analysis
- Quantitative Risk Modeling. Advanced statistical modeling using Monte Carlo simulations and FAIR methodology
- Technology Risk Assessment. Comprehensive evaluation of technology infrastructure and emerging tech risks
- Vendor Risk Management. Third-party risk assessment, due diligence, and ongoing vendor risk monitoring
- Legacy System Risk Analysis. Assessment of obsolescence risks and modernization strategies
Risk Management Framework
- Risk Appetite Definition. Establishing organizational risk tolerance and appetite frameworks
- Risk Governance Structure. Implementing risk committees, policies, and decision-making processes
- Risk Monitoring & KPIs. Continuous risk monitoring with key performance and risk indicators
- Executive Risk Reporting. Board-level risk reporting and strategic risk communication
Why Choose NOXMON for Technology Risk Management
NOXMON combines deep technical expertise with advanced risk modeling capabilities to provide comprehensive technology risk management. Our approach integrates statistical analysis, industry best practices, and practical business considerations to deliver actionable risk insights.
Our team includes certified risk professionals, cybersecurity experts, and technology specialists who understand both the technical and business aspects of technology risk. We leverage proprietary risk modeling platforms and industry-leading tools to provide precise risk quantification and strategic guidance.
Partner with NOXMON to transform your technology risk management from a compliance exercise into a strategic business enabler that supports innovation while protecting your organization's critical assets.
Tell us about your project
Our offices
- Houghton
101 W. Lakeshore Dr.
Houghton, MI 49931
(212) 913-9184
info@noxmon.com - New York City
34 West 13th Street
New York, NY 10011
(212) 913-9184
info@noxmon.com