Key man risk, or key person risk, is becoming an increasing consideration for Australian businesses, especially in IT departments where technology’s crucial role amplifies the concern. Key person risk materialises when critical business knowledge and skills are consolidated in the hands of one or a few select team members.
When such a ‘key person’ exits the business, they potentially take with them a wealth of knowledge, leaving gaping holes that could usher in downtime, escalate security vulnerabilities, and disrupt business continuity. Usually, this individual possesses a unique blend of skills and experiences that makes them irreplaceable.
The extent of this risk can range widely, but in the context of IT departments where technical expertise is often concentrated, the repercussions can be severe. Not only are operations affected, but the loss of a key person can have massive repercussions on public perception — and valuation of a company. A small privately-held company could see its valuation plummet, given the dependence on personal goodwill and expertise.
Many Australian CEOs and CIOs are becoming acutely aware of the critical issues related to Technology Key Person Risk (TKPR). Acknowledging this is paramount, and following this realisation, strategising on how to circumvent this potential pitfall becomes critical.
One of the emerging strategies is partnering with a Managed Service provider, an approach that’s rapidly gaining traction among Australian enterprises aiming to curb key person risk, with revenue in the Managed Services space projected to reach US$0.62bn in 2023. These partnerships can bolster the robustness of IT departments, creating a safety net that allows for business continuity even in the face of the sudden departure of a key individual.
Staying ahead of the game: addressing technology key person risk before it’s too late
Key person risk across Australian IT departments is growing. This is of particular concern for enterprises whose core legacy software systems have survived the tech transformation of the 2010s. While these teams may have acquired new software and integrations, the main ‘brain’ of the business has remained untouched for some time. This has led to valuable and complex system knowledge often being held by a few individuals within an organisation, who in many cases are starting to age out.
Amid the rise of cloud integration, the move to remote working, and the widespread wave of resignations, having essential system knowledge confined to a single individual or a small group poses a significant risk.
In the event these key personnel exit the company or face prolonged illness, they might take with them indispensable background expertise, essentially leaving a void of uncertainty and operational darkness in their wake. This situation often leads to operational delays, accumulating backlogs, or even a full halt of workflows.
In essence, if access to these crucial systems is monopolised by a single point of contact, the organisation is almost certainly grappling with a pronounced Technology Key Person Risk (TKPR).
TKPR has been shown to cause financial burden, operational setbacks, a stagnant work environment and managerial challenges.
While the ramifications of TKPR are manifold, partnering with a managed service provider can help alleviate financial burden, reduce unnecessary downtime, increase knowledge share and foster innovation.
Beyond key man risk: Discover Advent One’s tailored Managed Service Solutions
At Advent One, we fully understand the problems associated with Technological Key Person Risk (TKPR).
We work tirelessly with our clients to counteract these issues by developing solutions that decentralise expertise and enhance system resilience. Unaddressed, TKPR can result in stagnation where essential advancements are halted, and workloads exponentially increase for a select few individuals, leading to staff burnout and the reduction of a system’s overall value.
So how does Advent One step in to remedy this? Our strategies are multi-faceted and designed to meet the unique needs of each business.
Decentralised expertise through cloud-edge infrastructure
At Advent One, we understand the importance of resource decentralisation to mitigate key man risks. Through our innovative cloud-edge infrastructure, we enable businesses to distribute expertise more widely, minimising reliance on singular individuals and fostering an environment where knowledge sharing is the norm. This approach significantly reduces key man risks by spreading responsibilities across teams, promoting innovation, and ensuring continuous business operations. Furthermore, it allows staff to shift their focus towards business strategy objectives without being bogged down by day-to-day operational challenges.
Hybrid solutions for continuous operations
To prevent organisations from being overly dependent on a few individuals for mission-critical applications, we offer hybrid solutions that amalgamate both on-premises and cloud resources. This not only ensures continuous operations but also allows businesses to adapt without being forced into change, maintaining a comfortable pace of technological progression that suits their unique needs and goals.
AI-enhanced monitoring for distributed responsibility
We incorporate artificial intelligence into our monitoring tools, promoting a distributed responsibility approach. This technology not only offers predictive insights but also fosters a collaborative environment where monitoring and maintenance tasks are shared across teams, enhancing both the depth and breadth of skill coverage and encouraging a proactive stance towards issue resolution.
24/7 vigilant monitoring for uninterrupted operations
Emphasising business continuity, our vigilant 24/7 monitoring transitions IT teams from a traditional 9–5 operation to a round-the-clock functioning entity. This adaptation ensures uninterrupted operations, eliminating the over-dependence on specific individuals and offering guaranteed SLAs on response times.
Advent One delivers comprehensive Managed Services
At Advent One, we go above and beyond to provide you with the most comprehensive hybrid cloud and IT management capabilities via our Managed Services offering and Hybrid Cloud Management Platform.
Our Managed Services differentiation lies in our ability to provide:
- Monitoring and Metrics: We continuously monitor your infrastructure on a 24×7 basis, providing real-time metrics and insights for informed decision-making.
- Automation and Orchestration: Take advantage of our automation and orchestration services, including configuration management, provisioning, and patching, to streamline your operations.
- SIEM and SOC Services: Enhance your security posture with our Security Information and Event Management (SIEM) and Security Operations Center (SOC) services, protecting your hybrid cloud environment from threats.
Learn more about our Managed Services offerings here.