What is an essential aspect of risk assessment in APM?

Identifying compliance-related risks is a critical aspect of risk assessment in Application Portfolio Management (APM) because it ensures that the applications within an organization adhere to relevant regulations and standards. Compliance risks can arise from various factors, including industry-specific regulations, data protection laws, and organizational policies.

By focusing on compliance-related risks, organizations can protect themselves from legal liabilities, financial penalties, and reputational damage. Effective risk assessment requires a thorough understanding of the regulatory environment that the organization operates in, making it essential to evaluate how applications may expose the organization to compliance risks.

This approach not only safeguards the organization but also promotes a culture of accountability and ethical behavior in the use of technology. Organizations that actively identify and manage these risks can maintain better control over their application portfolios and ensure that their IT strategies align with legal and regulatory requirements. This proactive stance is essential in a rapidly changing technological landscape, where compliance standards are frequently updated.