Why Your Business Needs an IT Policy
Modern businesses rely on technology, but our reliance on tech brings risks that can’t be ignored. As much as business owners love crafting policies (we're being facetious), an IT policy is essential for protecting your business. A clear and updated policy provides your employees with clear guidelines for using technology, while addressing the challenges of emerging tools like AI.
With such high costs associated to cyber security incidents, system failures and data loss events, businesses that don't mitigate put themselves at great risk. Policy is just one tool, of many, to help safeguard your operations and stay ahead of potential issues before they arise.
Here are three reasons why your business needs an IT policy:
1 95% of breaches are attributed to human error
Employees often use technology in ways they think are helpful, but may inadvertently create risks. Without clear rules, they might use unapproved software, share sensitive data improperly, or rely on insecure devices.
The IBM Cyber Security Intelligence Index Report states that 95% of breaches (systems or data) are attributed to human error. This includes actions such as clicking on phishing links, not securing devices, using weak passwords, or failing to follow basic security protocols.
An IT policy eliminates this uncertainty. It sets out clear expectations for how employees should handle company devices, data, and software. For example, it can:
define password standards,
outline acceptable use of work devices,
restrict access to sensitive systems.
By providing clarity and transparency, you can reduce common (human) errors and their associated risk.
2 Directors owe responsibility to mitigate risk
As we've mention previously on our blog, Australian company directors have a responsibility, under both statutory and common law (Corporations Act 2001), to effectively govern the management of cyber security risk and build cyber security resilience.
Cyber risk has been recognised by the WEF as “the most immediate and financially material sustainability risk that organisations face today”. Cybercrime is costing Australian businesses over $42 billion annually, with a 23% year-over-year increase in attacks, according to the Australian Cyber Security Centre (ACSC).
An IT policy helps mitigate these risks by implementing measures such as multi-factor authentication, regular automatic software updates, and access controls. It also ensures your team knows how to respond to incidents like phishing attacks or ransomware breaches. Ask our team about putting a Cyber Incident and Response Plan in place alongside your IT policy. Having one in place can help minimise damage and financial losses if/when an incident occurs.
3 The growing use of AI demands tighter privacy controls
If there’s one reason to develop an IT policy now, it’s to ensure Artificial Intelligence is being used effectively and safely in your business. AI tools like ChatGPT are increasingly being adopted by employees, but often without approval or much oversight. A recent study by MIT Sloan found that employees frequently use generative AI tools at work without disclosing it, raising concerns about data security and compliance risks.
Your IT policy must now address AI specifically. It should define which AI tools are approved for use, what types of data can be input into these systems, and how employees can use AI responsibly without compromising security or privacy. Regular updates to this policy will ensure your business stays protected as AI evolves.
How to craft an IT Policy
An IT policy lays the foundation for your approach to technology business. If your business doesn’t have an IT policy or hasn’t updated it recently, now is the time to act. Technology changes quickly, so your IT policy needs to be revisited more often than other policies.
Speak to our friendly team at ShadowSafe to discuss creating an IT policy for your business. Call 07 3185 1777
