Auditing giant KPMG has called for businesses to take IT risks more seriously, pointing out that UK firms are paying out some £410,000 per year for unplanned IT problems.
As Computer Weekly reports, the study from KPMG found that an average of 776,000 individuals were affected and around four million bank and credit card accounts were compromised by each IT failure.
Technology is now a necessity
The research revealed that over half of IT problems were caused by coding errors or failed IT changes, leading KPMG to come to the conclusion that UK businesses are not acknowledging the implications of systems going offline.
Jon Dowie, partner in KPMG’s Technology Risk practice, says firms need to understand that computers are no longer something companies can simply do without – however temporary – with nearly every aspect of business dependent on them.
“Technology is no longer a function in a business which operates largely in isolation,” he stressed. “It is at the heart of everything a company does and, when it goes wrong, it affects an organisation’s bottom line, its relationship with customers and its wider reputation.”
The study found that 7.3% of reported events resulted from human error, which Dowie says is unsurprising given the “ever greater complexity in IT systems”, meaning companies need to do more to manage their risks.
“The cost of failure is all too clear. It is crucial for both public and private sector organisations to understand the risks associated with IT, and how they can be managed, mitigated and avoided,” he added.
Source: Computer Weekly