Peace of Mind – Price, Probability, and Impact

Is it just me, or does everyone seem to be selling ‘peace of mind’ these days? Advertisements for home insurance, security systems, extended warranties, and countless other products all appear to offer this elusive state of comfort.

Their message is simple, and it’s Marketing 101 – sell to the pain. Here’s the basic approach:

Your current state (without our product or service) leaves you at risk of some negative event (theft, damage, loss, etc.). The knowledge of this risk causes you some level of discomfort/anxiety/stress. If you buy our product or service, you can be protected against this risk, and experience peace of mind – a reduction in your discomfort/anxiety/stress.

Sounds good, right?

Except of course, that every product or service has a price. If you buy every solution to protect against every possible source of discomfort /stress/anxiety, you will soon find a new source of stress – limited cash flow.

The reality is that when purchasing ‘peace of mind’ products, we all make assessments of probability and impact. If a risk event (for example, an earthquake in Manitoba) is highly unlikely, even if it has a significant impact (damage, cost, etc.) our expected price would be low. Conversely, where the probability of an event is more significant, we have a greater willingness to pay for protective measures.

When it comes to your company’s technology, there is no shortage of peace of mind solutions. Anti-Virus, Anti-Spam, Backup and Disaster Recovery products are all designed to protect your company against ‘could happen’ events. None of these solutions are one size fits all, and finding the right ones for your business can be a challenge. Becoming a savvy purchaser begins by understanding what a technology risk event means for your specific business:

• What is the impact of a server outage in terms of business disruption? What is that cost?
• What is an acceptable amount of downtime?
• Which systems, if unavailable, bring our business to a standstill?
• What would be the impact of a data leak (financial or client information)?

With answers to these questions and others, and a proper understanding of the probability and impact of technology risks, you can begin to evaluate the many solutions available, finding those that offer the appropriate balance of peace of mind at an acceptable cost.

If you need help, get in touch – we’d love to hear from you.