If you run a business in this day and age, it’s highly unlikely at least some parts of your business operations aren’t digital. Whether you’ve always had a digital footprint, or the pandemic accelerated your transition, the impact on your risk profile as a result of digitisation might not be something you’ve thought of. Having an online presence and digital infrastructure brings with it some extra complexities which need to be considered in order to protect your business’s livelihood. Below, we outline some of the complexities that may accompany an increasingly digital footprint and some of the steps business owners can take to mitigate the risks.

A fairly obvious risk, but undoubtedly one of the most important. If you have a digital footprint, store client data digitally, or conduct any of your business online, there is a likelihood of falling victim to a cyber-attack. With 62% of small businesses admitting to having suffered a cyber incident, the threat is ever prevalent and can have crippling effects for your business.

Safeguarding your business against cybercrime requires a holistic approach, including having the appropriate technological security measures and adequate staff training. Cyber insurance should also be a consideration for any business with a digital footprint. It can help to cover financial losses experienced by your business if you fall victim to a cyber-attack. You can learn more about cyber insurance options here.

Gone are the days when record keeping involved walking over to a filing cabinet and filing documentation, and although digitisation has made record keeping simpler, it may also increase the likelihood of human error. The implications of accidentally deleting files, saving on incorrect servers, and glitches resulting in lost documentations can be significant.

Good record keeping should, therefore, be an area of focus for any professional service-based business. Good record keeping involves both ensuring the right behaviours on the part of employees, as well as having the appropriate administrative procedures in place. It can especially be helpful in defending claims if a client brings forth an allegation of professional negligence under Professional Indemnity Insurance.

It’s hard to imagine running a business without some form of social media presence. If you do choose to promote your business on social media, remember to take all due diligence in what you post. In advertising offers, ensure you’re not making any unrealistic claims, and clearly stipulate any conditions. What you share or endorse in a personal capacity can also impact your professional reputation, so bear this in mind when using your personal social media accounts. Some types of content or activity on social media can be enough to have clients bring forth allegations of professional negligence against you, so it’s important to be diligent. While social media is not without risks and complexities, if used correctly and with integrity, it can also be a useful tool in helping grow your business.

Technology has certainly enabled an era of ‘work from anywhere’, but there are some incidents which may jeopardise your business’s trust with your clients. For example, you might be keeping to yourself working on your laptop, but a passer-by may catch a glimpse of sensitive information about your client(s). Or what you think is a quick phone call to discuss some simple issues may be overheard by the wrong stakeholder. Whether you run your business wholly online, or have a hybrid situation, working remotely requires some extra precautions. Taking all due care in protecting your clients’ privacy is paramount. If you need to make phone calls, keep them brief while in public spaces, and avoid discussing sensitive details. When working on your laptop, try to find a place where your back is to the wall. Maintaining an overall vigilance with what you’re working on, and where you’re working can help prevent inadvertent privacy and confidentiality breaches.

Operating your business digitally means you might also find yourself hiring virtual employees or contractors. Whether you’ve hired a virtual assistant, or an employee who is working directly working with clients, remember to check your insurance and ensure work performed by them is covered. This is especially important if your business is involved in providing professional services or advice, and you hold Professional Indemnity Insurance. In some cases, depending on how your employment contract is set up, you could be held liable for errors or negligence on the part of your employees. It’s therefore also important you check the cover under your Professional Indemnity Insurance as your insurance may not automatically cover the actions of contractors.