Risks of using contract workers
If a contract worker or contractor's employee caused a serious accident, would your company be willing to provide evidence that all reasonable steps were taken to prevent such an accident? How will this affect your company's reputation?
Do you review and ensure your contractors have robust health, safety and environmental programs in place? Have your contractors develop and communicate to their employees measures to enable them to effectively manage all work-related health, safety and environmental issues.
Contractors and their subcontractors often have a better experience when employed directly on the front end. Businesses may need to redesign their governance structures to accommodate this situation. But with new technology, such a shift is more likely.
Risks of using remote workers
Remote work environments increase the risk of data breaches or other cyberattacks for a number of reasons, according to several security experts. Remote work, especially at scale, greatly increases the potential attack surface that needs to be protected.
Remote workers sometimes further expand the attack surface and increase risk by introducing unsanctioned technologies. "Shadow IT has grown as people working from home buy [technology] that may not have been IT-approved, but they have to get their jobs done," said Sushila Nair, vice president of security services at NTT Data Services, ISACA Emerging Trends Work, Professional IT Governance Association group members. Because the technology can go undetected by IT, shadow IT often lacks the required security validation and protection, she added.
Remote work also increases the likelihood that employees will use unsecured networks such as public WiFi. Home networks are also often vulnerable. "In an environment where people are working from home, they don't have the technical knowledge to stay safe," Nick explained. "They may be directed to upgrade their routers or use a VPN, but may not have the technical knowledge to do so. At the same time, the state is attacking home routers and home networking equipment." The threat is so great that U.S. network security and infrastructure The Security Agency (CISA) highlighted this risk in a June 2022 alert.
Risks of outsourcing
One of the biggest risks associated with outsourcing is loss of control. Business processes handled by internal development teams are outsourced to external agencies, resulting in a loss of control. If the service provider is not well managed, it may affect the product quality. In addition, the degree of control also depends on the geographical distance of the outsourcing developer. In-person meetings and inspections are impossible when distances are great and you rely on virtual lines of communication, making it difficult to monitor performance and productivity.
When a company outsources its operations, it faces several risks, including the possibility of intellectual property theft. When a company outsources production, it usually means sending the work to another country.
One of the main risks of outsourcing is the lack of communication between the company and the service provider. Failure to do so will result in misunderstandings about the services provided, delays in completing work, and lack of accountability.
