Is Technical Debt Limiting Your Company’s Competitiveness?

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Board Perspectives: Risk Oversight, Issue 109

“Technical debt” is a concept that refers to the cost and magnitude of additional rework caused by choosing technology solutions that are easier to implement over the short term instead of the best overall solution for the long run. Directors and executives need to understand the issue better to overcome the constraints it imposes on the enterprise’s ability to compete effectively in the digital age.

This article presents options to address technical debt and create an organization’s overall road map that is tailored to its specific situation and risk appetite. Also included are some suggested questions that boards of directors may want to consider, based on the risks inherent in the entity’s operations.

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