New technology can be expensive to buy and maintain. Money must be spent on training staff to use new hardware and software and on maintaining proper security and back-up systems. As Ulster Bank discovered, failure to invest in up-to-date digital technology can be a costly mistake. Digital technology can become obsolete relatively quickly and has to be replaced. This can impose significant costs on a business. Highly skilled staff may be needed to operate and maintain some computer systems. Recruiting and retaining such skilled staff requires paying large salaries.
(b) Risk of catastrophic breakdowns Business disruption risks are greater if a business has heavy reliance on ICT. A fault with a computer system can bring a whole business to a standstill. For example, if the online booking system for a hotel or airline crashes, no bookings can be made. Every business needs to have contingency plans in place to deal with the risk of technology failures. For example, Bank of Ireland backs up its computer files many times during a single day and stores this data in different locations to protect against data loss or corruption.
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(c) Security risks Information security is critical as computer systems are vulnerable to infection by computer viruses, attack by hackers and other risks that can result in important data being stolen or destroyed. According to the data protection law, any data held on a computer must be protected against unauthorised access or use. Cybercrime refers to any type of crime that uses information and communications technologies. Cybercrime is becoming increasingly common as more businesses use the Internet for everyday activities. Computer fraud is increasingly common as criminals try to steal credit card and personal banking details. The most prominent form of cybercrime is identity theft. All businesses should ensure that they have strong IT security systems in place.
