When using data management, understanding risks and rewards are critical to business. Managing data is like managing any other business value by controlling risks that can result in high costs and low returns. It is important to recognize risks and reward those that will reduce those risks while focusing on the most profitable activities.

One of the largest challenges facing data professionals today is self-service learning. The concept of self-service learning is becoming increasingly popular as businesses realize they must engage employees in decision making. With traditional software solutions, it was necessary to have an IT professional on staff to manage the data lifecycle, update licensing, configure devices and configure web portal applications. Today, with web-based applications and a focus on user self-service, IT budgets are shrinking while employees retain control over their data. This results in less costly training and a higher retention rate for new users.

Risk management is part of the data lifecycle. It is also part of the continuous improvement process for a more sustainable data management approach. Risk management must become an integrated part of the organization. It should be part of the everyday process of decision making as it is a key factor in determining the rewards and risks of each action taken. Companies must be willing to test and adjust risks to find those that are not only acceptable but necessary in improving processes.

The rewards and risks associated with implementing a successful data lifecycle management system are directly related to the quality and the size of the business. The smaller the business and the simpler the process, the lower the rewards and the larger the risks. A small business with many unique products or services can be very risk tolerant and allow for quick iterations of solutions when issues arise. On the other hand, a large organization with a standardized product portfolio will be much more susceptible to risks and rewards when new products or services are introduced. Large organizations with a larger breadth of products and services will have more opportunities to encounter problems. They also have the resources to solve problems quickly and to respond to emerging trends and market conditions quickly.

In order to facilitate the self-service model of operations, a company must provide an easy way for its users to identify, evaluate, and measure risks and rewards. The user interface for the self-service tool must be very clear, straightforward, and easy to use. The tools should include comprehensive and concise reporting and analysis of risks and rewards. They should also allow the user to customize the self-service interface to fit the particular organization and its needs.

The final step of the risk profile is the modoras, which assesses the strengths and weaknesses of the risk profile. For example, a weak revenue stream may warrant a focus on improving cash flow. A strong market share lead may mean investing in advertising. Understanding risks and rewards is necessary in every organization so that managers can successfully implement and control the rewards or minimise the risks in their environment.