Before diving deeper into the benefits that a companies will enjoy from source code escrow, we’ll briefly examine the nature of enterprise risk management (ERM).
ERM centers around planning, spearheading, and handling the ongoing operations of an organization. Done in a way that offsets the adverse effects that risk can have on continuity, capital and earnings.
What is Enterprise Risk?
Realistically, every decision we make involves some sort of risk. People take a risk every time they cross a busy street without waiting for a traffic light to turn green. Or when they lift a heavy piece of furniture.
But what makes something a distinct enterprise-level risk?
These risks generally have to do with a company’s financial, strategic, and operational functions, which these days virtually always involves IT systems.
Why ERM is Becoming More Prominent
As the digital age grows with seemingly no bounds, businesses are becoming more connected with cyberspace and rely on it for success.
Now, investors and regulatory bodies keep a keen eye on risk-management policies and procedures. Throughout many industries, it’s mandated that boards of directors scrutinize and report on the efficiency of the risk-management processes.
An ERM Mentality Shift
Many of the pitfalls of ERM stem from the culture within companies.
Instead of treating the reduction of enterprise risks as something everybody must understand, companies brush it off as an IT compliance obligation.
Such a mentality obfuscates and complicates ERM. The only time it’s discussed is when a chief information officer discusses compliance issues in jargon-speak that nobody understands.
In 2019, companies mustn’t just aim to meet IT standards as a tick-box of sorts. Decision-makers and leaders must prioritize overall risk reduction. Meaning, there must be visibility into the total security of the organization. This will aid in catalyzing new, transparent dialogue surrounding ERM.
How to Change Corporate Perceptions of ERM
Here are a few key methods that help organizations bolster their ERM practices:
Establishing a scope:
- Define vital business processes and related risks
- Then, prioritize processes and risks
- Figure out what threatens business objectives and strategies the most
- Disperse that information to the necessary individuals and establish protocols to mitigate those risks
Create an Action Plan:
- Risk treatment plants will pinpoint unnecessary risks while closing risk gaps
- There must be measurements to identify discrepancies and evaluate the success of the current strategy
The last recommendation deserves its own section and is the entire reason for this blog—implementing source code escrow.
What is Escrow?
When a third party receives then disburses money/property for primary transacting parties, it’s referred to as being in escrow. Most commonly, escrow uses many terms that conduct a set of proceeding actions. The transacting parties agree to conditions which necessitate the terms of the disbursement.
Why Source Code Escrow is Essential to Organizations
With every passing year, businesses become increasingly reliant on computer systems and networks. It makes sense, technology seemingly evolves every minute, and there’s no point in relying on archaic methods to run an organization.
However, with the advent of the digital age comes a litany of potential headaches – namely with the source code and data responsible for running these systems. This puts enterprises at tremendous risk that could sink them in the long run.
Any company that licenses software, outsources software development, or hosts its software on a cloud or external data center can run into the following problems:
· Counterparty risk
· Losing data accidentally
· Going bankrupt
· Stolen data
· Unwanted downtime
· Senseless and wasteful lawsuits
· Catastrophic situations
· Backup recovery snafus
· Data and identity theft
· Hacking ransomware
· Employee sabotage
Unfortunately, that list of 11 potential disasters only scratches the surface of what can wipe an entire company from existence. After losing control of data and source code, all the sound business practices in the world won’t save an organization from ultimate doom.
As such, escrow is essential for businesses to protect themselves from enterprise risk, as it’s highly secure and equally affordable.
Let’s take an even closer look:
How Modern Source Code Escrow Keeps Companies Safe
Older source code escrow technology is no longer up to standards. Luckily, there’s newer software such as Codekeeper. It’s now possible for software developers, and licensors – as well as development outsourcers, can manage their entire escrow from one user-friendly dashboard.
Also, Codekeeper seamlessly integrates with developer workflows on SCM-platforms like Github. Furthermore, Codekeeper’s source code escrow deposits will encrypt and fully automate, thus ensuring permanent compliance.
Lastly, Codekeeper includes official escrow agreements, release terms, beneficiary management, data escrow, and an arsenal of other services. Find out more today.
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