Does your company rely on software? The most common answer will likely be a large and resounding yes.
In some companies, of which financial firms and services are no exception, productivity thrives on software. Whether it’s a detailed financial system, a large enterprise package or anything in between, everyday activity in the office requires some form of digital service.
Yet, for some business owners, this isn’t a natural concern for risk. We assess everything else for its flaws and look for means to counter them, so why not here? The best way to avoid disaster is to learn how to keep my business at risk, and then take the opposing counter measures.
What could go wrong?
In short, everything can go wrong. If software doesn’t work, the vital link in productivity is gone. If you can’t work, you can’t make money.
Knock-on effects quickly add-up – maybe work doesn’t get sent off, filing isn’t completed in time and new customers are instantly put off your business. It’s a downward spiral.
How to negate risk
Like other areas, you look for a form of insurance against risk. This is why we insure various business operations and property. Since software isn’t owned by its users, companies should look for a more unique form of insurance. In this case, let’s look at software escrow.
With such digital products, Software as a Service dictates you don’t own the source code (in essence, the product itself) but, in return, the provider maintains the product for you. This is why you rely on them and, when something goes wrong, your IT team has limited capabilities – they don’t have the code needed to solve anything.
Software escrow, often known as source code escrow as well, takes this code into a secure account out of each person’s hands, yet the agency itself can transfer it to you when the SaaS becomes void (due to the providers fault). This quickens the normal process and adds extra risk to the provider, in turn encouraging them to fulfil their end of the deal.
Put simply, this motivation is risk negation. It cuts the likelihood of the company abandoning the agreement and, even if they do, it offers a quick and efficient resolution.
From a business perspective, this makes perfect sense and, even from a financial view, the risks far outweigh the costs.