5.3 Risk to Organisations of Using Digital Systems

Security breaches occur when systems are accessed or exploited by unauthorised users. This can lead to:

• Compromised confidentiality – sensitive data being accessed
• Loss of integrity – data being altered or corrupted
• Reduced availability – systems becoming unavailable

Example: A cyberattack causes an online service to become unavailable to customers.

Privacy breaches occur when personal or confidential information is exposed without authorisation.

• Personal information of customers or staff
• Confidential business information

Example: Customer data is accidentally shared due to poor access controls.

Organisations must meet legal and regulatory requirements when using digital systems. Failure to do so can result in sanctions.

Example: An organisation stores data incorrectly and fails to meet data protection regulations.

Digital systems may exclude users due to:

• Biases in system design or data
• Poor user experience

Example: A website without accessibility features excludes users with additional needs.

New digital technologies may emerge that outperform existing systems, reducing competitiveness.

Example: A competitor adopts newer technology that delivers faster services.

Technical risks include:

• Over‑reliance on digital systems
• System failures or outages
• Systems that are not fit for purpose

Example: A system outage prevents employees from carrying out core tasks.

Risks associated with digital systems can lead to:

• Legal action from customers or regulators
• Financial penalties or fines
• Damage to organisational reputation
• Withdrawal of licence to operate
• Loss of customers and business opportunities

Example: A data breach damages trust and causes customers to leave the organisation.