Technology risk is the potential for technology failures and shortfalls to result in losses. This is actually a broad category of risk that includes the following risks.
In theory, there are also low probability but high impact technology risks such as existential risks related to AI.
Technology Compliance Risk
Legacy Technology Risk
Data Privacy Risk
Technology Budget Risk
ExamplesAn ecommerce website crashes resulting in lost revenue.A technology project goes over budget and fails to meet goals set out in its business case.A security incident results in theft of customer data resulting in legal liability, reputational damage and compliance issues. A trading algorithm makes a series of illogical trades that result in losses.
Next: Types of Technology Risk
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