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What are the benefits of outsourcing risk mitigation and management?
Rather than handling risk management and mitigation within your organization, outsourcing these important processes to a third party comes with substantial benefits.
There are numerous benefits to outsourcing risk mitigation and management to a third party. While there is some comfort in handling these critical processes in-house, that extra degree of control does not often outweigh what you have to gain from handing it to dedicated experts.
One such benefit is that, when outsourced, risk mitigation likely receives more specialized attention than it would if it were handled in-house. After all, risk mitigation is the outsourcing company's core business, or at least one of its primary service offerings. On the other hand, for most companies, risk assessment and mitigation is just a task they must perform in order to ensure the ongoing success of their IT operations.
Assuming that risk mitigation and management services are the provider's core business function, it means that the provider will have staff members who are dedicated solely to handling those tasks. While it is true that your organization could hire its own risk management staff, outsourcing is likely to be the less expensive option because the provider is spreading staffing costs across its client base, as opposed to your company incurring the full cost of added staff.
As attractive as the potential cost savings may be, an even greater benefit to outsourcing IT risk management is that the provider has experience and expertise that go well beyond what you might realistically expect to achieve in-house. Most risk management providers have developed rigid processes that are based on their experience, as well as industry best practices. These processes help ensure that all known risks are addressed. Conversely, a DIY approach to risk mitigation and management can lead to certain issues getting overlooked, simply because the organization's staff does not know about a particular risk.
While the primary benefit to risk mitigation and management outsourcing may be that your organization addresses risks in a more comprehensive way, there are other potential advantages. For example, some insurance companies may offer discounted premiums to companies that use a professional risk management service. Similarly, outsourcing risk management can make it far easier for an organization to deal with a compliance audit. In fact, a good risk management provider will structure its approach to managing and mitigating risks based on a company's compliance requirements.
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