Spotting Red Flags: How Managers Can Identify Risky Tech Practices

26 September 2025

Spotting Red Flags: How Managers Can Identify Risky Tech Practices

Technology drives business forward, but it also brings risks. Risky tech practices are actions or habits that can expose an organization to security, operational, or legal problems. For managers, recognizing these early is crucial. Detecting issues before they grow can save both time and resources. Ignoring them, on the other hand, can lead to serious setbacks, including data breaches, financial losses, and reputational damage.

Managers are in a unique position to notice inconsistencies, gaps, or unusual behaviors in their teams’ tech practices. By acting early, they can prevent small problems from turning into major crises. The responsibility is not just technical, it’s about protecting the organization’s future.

Common Red Flags in Technology Practices

Several warning signs can indicate risky behavior in technology. One example is shadow IT, where employees use unapproved software or devices to get their work done. While these tools may seem convenient, they can bypass security controls, leaving sensitive information exposed. Managers should watch for software installed without approval or devices connected to company networks without IT oversight.

Weak cybersecurity measures are another red flag. Outdated antivirus software, unpatched systems, or weak password policies can create openings for cyberattacks. Unvetted third-party tools can also be risky. Even if a new application promises increased productivity, it can carry hidden threats if not properly reviewed.

Data management practices deserve attention as well. Scattered storage, poor version control, or inconsistent data entry can indicate that an organization is not fully protecting its information. Even small lapses, like unsynchronized databases or unbacked-up files, can point to larger systemic issues. Managers who notice repeated minor problems should investigate further, as these can reveal deeper weaknesses that may affect the entire organization.

Assessing the Impact of Risky Practices

Not all risks are equal, so managers need to understand the potential consequences of risky tech practices. Operational impacts might include system downtime, lost productivity, or workflow disruptions. Financial risks can involve direct costs, fines, or lost revenue. Reputational harm can occur when clients or partners lose trust due to preventable incidents.

Using tools like risk matrices or scoring systems helps prioritize interventions. These tools allow managers to assess which risks require immediate attention and which can be monitored over time. Prioritization is essential because organizations rarely have unlimited resources to address every issue simultaneously. A structured approach ensures that the most critical problems are addressed first.

Evaluating risks also requires looking at long-term consequences. For example, weak cybersecurity today could lead to regulatory penalties or lawsuits in the future. Similarly, managers should stay aware of emerging legal risks, such as insights on AI-washing securities litigation risks, which highlight how overhyped or misrepresented AI capabilities can expose organizations to compliance and reputational issues. Considering these potential legal consequences helps managers weigh both immediate and future impacts more accurately.

Even minor software misconfigurations or overlooked procedures might seem harmless but could later result in serious data exposure. Managers must consider operational, financial, and legal outcomes to make informed decisions about where to focus attention and resources.

Proactive Strategies for Managers

Managers can take several steps to reduce risky tech practices. Regular audits help identify gaps in systems, processes, and compliance. These audits do not have to be complex. Even simple reviews of software usage, password policies, and data handling can uncover significant vulnerabilities.

Staff training is another essential strategy. Team members should understand how to use technology safely and follow security protocols. Training should be practical, including examples of real-world incidents that demonstrate what can go wrong. Knowledgeable staff are more likely to follow best practices and less likely to introduce accidental risks.

Clear technology governance policies define acceptable practices and responsibilities. These policies provide guidance on software approvals, data management, and device usage. When policies are well-communicated and consistently enforced, employees have a clear understanding of expectations, reducing the likelihood of risky behaviors.

Open communication channels are critical. Encouraging team members to report problems or raise concerns without fear of retaliation helps catch issues early. Whistleblower mechanisms can serve as a safety net for reporting serious concerns. Managers who listen and respond constructively to reports build trust and prevent small problems from escalating.

Creating a Culture of Risk Awareness

Risk management is not just about rules; it is about culture. Managers can promote accountability by setting clear expectations, following up on compliance, and modeling responsible behavior themselves. Transparency within tech teams encourages honesty and collaboration, making it easier to spot and resolve issues.

Encouraging early reporting of concerns is vital. Teams that feel comfortable flagging potential problems can prevent minor errors from growing into major incidents. Continuous monitoring of systems and processes ensures that issues are caught promptly, even before they become noticeable to clients or stakeholders.

Integrating risk awareness into strategic decision-making ensures that technology practices support long-term goals without creating hidden vulnerabilities. This means that risk considerations are part of planning meetings, project reviews, and technology investments. Teams that understand the importance of these discussions are better positioned to maintain stability and achieve organizational objectives.

Fostering a culture of risk awareness requires ongoing effort. Managers should celebrate proactive problem-solving, share lessons learned from past incidents, and keep risk discussions visible across the organization. When everyone understands their role in managing technology responsibly, risky practices are less likely to occur, and the organization as a whole becomes more resilient.

Conclusion

Spotting risky tech practices early is essential for protecting both technology and the organization. Managers play a crucial role in identifying warning signs, assessing potential impacts, and implementing preventive measures. By fostering a culture of awareness and accountability, leaders can reduce the likelihood of operational, financial, and reputational harm. Proactive steps today help safeguard the organization’s future, making technology a tool for reliable growth rather than a source of avoidable risk.

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The article is part of our series on How to Motivate Employees to PERFORM. Knowing how to motivate employees is one of the most important aspects of a manager’s job.

But as important is the need to manage the factors that contribute to that motivation, and to create the conditions for people to perform and realise their potential.

Our tool to help you achieve these management skills is the Apex PERFORM model. It stands for:

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