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Taking Risks With Your IT? You May Not Like The Consequences

Article by Endsight on March 26, 2024
Endsight
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Conquer IT Uncertainty with Strategy

Regarding IT support, the number one thing that people worry about is not what you might think. 

  • It’s not security risks, such as hacking and ransomware.
  • It’s not downtime. 
  • It’s not desktop support.

These would all be better classified as symptoms, and while a promised secure environment and a 24/7 help desk may provide some comfort, they don’t remove the concern.

When faced with an expert’s assessment, most are surprised by the risks they can’t see – those that lie underneath everyday concerns. 

Why do you want certainty, not solutions?

A Freakonomics podcast best explains it. MIT Finance Professor Andrew Lo explains that billionaires make money and fuel innovation by betting on uncertainty instead of risk. 

But what does that mean? Here is a simple  illustration of that principle: 

  • Suppose you’re invited to play a game. There are 50 red and 50 black marbles in a jar. To play, remove one marble and write down the color.
  • If the person who puts the marbles in the jar can guess the color, you lose and get nothing. If they guess it wrong, you win $10,000. Now, how much would you pay to play that game?

Calculating the odds in your head is risky. Once you’ve considered all the variables, you can calculate the probability of winning or losing. Industries, from banking and insurance to carnival games and street hustling, are all built on these risk calculations.

  • Suppose you were offered the same wager with a new jar of marbles, but you had no idea what was in the jar. You’re told that there are most definitely black and red marbles in there, but the amount of each color is completely unknown. How do you calculate the chances that you’ll win? 
  • You can’t. There is too much uncertainty.

This is the environment in which business leaders often find themselves. This kind of uncertainty causes people to make poor decisions. They either act from a place of fear (risk aversion) or completely underestimate the risk because they can’t quantify the potential consequences. 

How does this relate to IT support? Making a poor decision can have consequences greater than many businesses can absorb, creating issues with growth initiatives as well as:

  • Reliance on obsolete technology
  • Investing in the wrong solutions.
  • Not understanding that IT is an essential part of the business.

Conquering uncertainty in IT requires a sound strategy that spurs business growth. An outside expert evaluation can put you on the right track. 

Check out our blogs – we offer insight on leadership, productivity, and technology that help conquer uncertainty and help your people and organization thrive.

Want to take your IT strategy to the next level? Contact us!

Tags: IT strategy, general IT

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