In the modern world, there’s no doubt that the way we work is changing - in fact, according to multiple surveys, 70% of businesses across the world are now adopting either a fully remote or hybrid working model. While this is great for staff and, in some cases, finance, many MSPs (Managed Service Providers) fail to match their risk management systems with their new – more vulnerable – way of working. Although old-school central risk management systems can be effective when all your staff are in one place, you can probably imagine that they’re not so great for remote models.
Because of this, lots of organisations are turning to
decentralized risk management frameworks that match their cloud, remote and hybrid infrastructures. In a nutshell, this is all about spreading out the responsibility for risk identification and management to individual sectors, departments or people which allows laser-focused attention from those who know their own sector best.
In this ZandaX article, we show how shifting to this model instead of the traditional centralized system, MSPs can reduce security failures and breaches, enhance service and build resilience regardless of where – and when – staff are working.
Why Decentralized Risk Management Matters
Decentralization is so much more than just the next bandwagon to jump on to. It speaks to the one thing that should matter most to any business - security. I’m sure I don’t need to tell you that cyberattacks are on the rise, but what you may not know is that, according to a recent
Data Breach Report by IBM, the average cost of such a crisis averaged a staggering $4.45 million! Can your company afford that? Probably not. And even if it could (you must be working for a very big beast!) could it justify it? Of course not. This serves to underline the importance - and seriousness - of prioritising cybersecurity. And decentralized risk management helps here by allowing MSPs to drill down to individual vulnerabilities and then place responsibility in the most appropriate hands. By taking the strain away from one central place, this improves security as a whole but, more specifically, limits the impact of a breach through faster and more effective control.
For example, MSPs that use
Colorado Springs IT network support services are able to use local expertise and infrastructure to reinforce cybersecurity measures. This localized approach enables faster response and more effective recovery, which are essential to keep downtime and financial losses to a minimum. By utilising risk management resources closer to where the work happens, MSPs can build much more proactive defenses.
Integrating Decentralized Risk Management
So, how does it work? For decentralized risk management to be super-effective, it requires clear and structured procedures for communication and real-time data sharing. This means rethinking a number of factors including tech stacks, organizational structures and how you engage with clients. This begins by giving all your distributed teams with the authority and tools that they need to keep on top of spotting, assessing and minimizing risk … all while maintaining your existing business objectives.
To achieve this, your best bet will be to put in place integrated platforms that are designed to deliver visibility throughout your network – and which are laser-focused on proactive detection and response to different threats.
An illustrative case is the use of
Norterra's computer support solutions. Here, embedded support engineers are stationed close to client sites, or operate remotely with full access to local data. This enables closer ties, accelerates problem fixes, and the high level of transparency builds client trust.
The answer is often to invest in advanced automation tools for MSPs - particularly when working in a complicated and fast-paced environment. This will cut down on human error while maintaining consistency across the board.
Building Distributed Team Resilience
For your teams, resilience is so much more than just grabbing yourself some new tech! It’s about reinventing your company culture as a whole by promoting risk awareness and continuous improvement at every stage. When team members are encouraged to proactively take ownership of identification, mitigation and response to threats, the magic actually starts to happen. By introducing an open communication culture - including tools and virtual meetings - you can make sure that team members stay focused, invested and engaged.
There are a few things that can help you to get onboard with this including the introduction of scenario and simulation training programs which help teams to work together. This is widely felt to directly reduce the impact of breaches by around 40% - which makes it a great investment in anyone’s book.
Similarly, encouraging feedback within your decentralized risk setup is a really useful way of staying ahead of the curve when it comes to new threats and risks.
Challenges and Considerations in Risk Management
As with any new system, there are some things to look out for when shifting to decentralized risk management. Things like data privacy regulations and unclear policies can lead to errors and inconsistencies in risk assessments and responses. Both of which will have serious consequences. An example of this is the European Union GDPR laws which have strict guidelines on how risk management is implemented.
Because of these risks, it’s vital that businesses put in place robust structures for governance which include autonomy and accountability in equal measure. Equally important are structured and comprehensive structures for risk management that achieve the sweet spot of decentralized practices combined with centralized control. Automation and analytics tools can really help to shine a light on escalation processes and produce standard reporting while staying aligned with risk and compliance policies.
As with the introduction of any kind of new technology, MSP’s should always make sure that their new tech can integrate with their old. And of course that the entire system is scalable so it continues to improve visibility, response times and service well into the future.
The Future of MSP Service Models: More Decentralization
We’ve just touched on future-proofing your risk management and this is essential for continued security and resilience. As more and more businesses choose a decentralized risk model, most will be looking toward advanced technology such as AI, Edge and blockchain in order to gain a competitive edge.
AI in particular is incredibly useful here through its power to crunch through data to produce real insights and analytics; Edge allows for real-time processing and decision-making; and blockchain lends itself perfectly to decentralisation. All of this enables tailored solutions which address individual risks and therefore improve operational resilience.
Gartner estimates that about 75% of all data is being handled outside centralized data centers and clouds - which means that the future really is now!
Conclusion
As we’ve shown in this article, switching to decentralized risk management requires MSPs to change the way they think about how they deliver a great service while protecting their clients - and their own - assets. As we move into the future, teams that are empowered to take responsibility for the risk management of their own departments lead to reduced impact of threats, an improved company culture and sustainable growth.
Which is, we’d say, a much better outcome than constantly battling the consequences of data breaches!
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