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Technology Risk Assessment Framework for Australian Boards

A comprehensive framework for boards to assess and monitor technology risks, including cybersecurity, operational resilience, and strategic technology decisions.

By Michael Rodriguez•10 Jan 2025•12 min read

Australian boards face unprecedented technology risks—from ransomware attacks costing millions to AI bias lawsuits threatening reputation. Yet 73% of board members lack confidence in their ability to oversee technology risks effectively. This framework provides a structured approach to technology risk governance that meets APRA and ASIC expectations while enabling strategic technology decisions.

Five Critical Technology Risk Categories

1. Cybersecurity & Data Protection

  • • External threats (ransomware, APTs)
  • • Insider threats and privilege misuse
  • • Data breach and privacy violations
  • • Third-party vendor security gaps

2. Operational Resilience

  • • System outages and downtime
  • • Disaster recovery capability
  • • Technology debt and legacy systems
  • • Critical vendor dependencies

3. Strategic Technology Risk

  • • Technology investment ROI
  • • Digital transformation failures
  • • Competitive technology gaps
  • • Emerging technology adoption

4. Regulatory & Compliance

  • • Privacy Act compliance
  • • Industry-specific regulations
  • • Cross-border data transfer
  • • AI and algorithmic accountability

Board Risk Assessment Framework

Risk CategoryLow RiskMedium RiskHigh Risk
CybersecurityZero tolerance frameworkIncident response planContinuous monitoring
Operational99.9% uptime achievedDR tested quarterlyLegacy system strategy
StrategicROI tracking in placeAnnual tech strategy reviewInnovation pipeline
RegulatoryCompliance automationRegular auditsLegal counsel engaged

90-Day Implementation Roadmap

Days 1-30: Foundation

  1. 1
    Establish technology risk committee with independent expertise
  2. 2
    Conduct baseline technology risk assessment across all categories
  3. 3
    Define risk appetite and tolerance thresholds for each category

Days 31-60: Framework Development

  1. 4
    Implement risk monitoring dashboard and KPI tracking
  2. 5
    Establish quarterly risk reporting to board
  3. 6
    Create incident escalation procedures and communication protocols

Days 61-90: Optimisation

  1. 7
    Conduct tabletop exercises for major risk scenarios
  2. 8
    Review and refine risk assessment framework based on findings
  3. 9
    Establish ongoing risk management maturity improvement plan

Key Success Metrics

< 24h
Critical incident response time
99.5%
System availability target
Zero
Material compliance breaches

Need help implementing this framework?

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