Security risks in business can lead to financial losses for both the business and its customers. These risks can be physical or digital, and proactive and reactive measures can be taken to prevent and manage them. Theft and information security failures can impact customers and lead to losses for the business.
A security risk in business generally indicates some form of financial risk to a business. This typically includes risk to customers and to the business itself, as customers exposed to risk or losing money are likely to remain loyal. A security risk to a business can lead to malicious attacks or theft, which typically include both physical and digital threats.
Often associated with risk analysis, a security risk is typically a malicious attack on a business or enterprise. Many of these risks can be identified and addressed through proactive efforts that prevent malicious attacks or errors from occurring. Reactive actions can also be used to manage a security risk, however, as some problems can arise regardless of preparedness and should be handled quickly and effectively to reduce the impact of those problems.
A digital or information security risk can be a major concern for many businesses that use computers for business or archival purposes. These types of risks often involve malicious attacks against a business through viruses, hacking, and other means. Properly installing and updating antivirus programs to protect systems from malware, encrypting private information, and securing wireless networks are all forms of preemptive risk assessment and information protection. Reactive actions against a digital security risk can include eliminating malware from a system, detecting and combating attacks, and notifying law enforcement of such attacks.
There are also more traditional forms of attack or leak that can pose a security risk. Theft, for example, continues to plague many retail businesses and this can include both internal employee theft and external theft. This type of security risk is often managed through a corporate loss prevention (LP) focused department and often involves both preventative and reactive actions. Such risks can be avoided through background checks of prospective employees, the use of security equipment such as cameras, and investigation of reported thefts.
These types of security risks can also impact a company’s customers. Digital or information security failures can result in private customer information being accessed by unscrupulous individuals who can then use that information fraudulently. This can result in losses for customers, which can lead to losses for a business to compensate those customers and those customers who terminate business with that company. Physical theft and loss to a business often raises the prices of products offered to customers, which can make it more difficult for a business to remain competitive.
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