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Risk-reduction projects don't directly add to the top line or the bottom line, which sometimes makes them harder for CIOs to justify. Do not let this deter you. Reducing risk is an important undertaking, and projects that reduce risk are arguably more important than projects that fall into other categories. On the infrastructure side of the house, risk-reduction projects include upgrading to supported operating systems, building out redundancy for your network and servers, implementing cyber-security tools, and moving key workloads to the cloud. Applications also benefit from risk reduction efforts. Building fallback systems, modularizing code, and test automation are examples.

Major system failures are costly and embarrassing to companies and harm the reputation of the CIO. Don't wait to reduce risk until after an incident occurs. A mature enterprise risk-management process will help you identify areas of concern for your particular situation.

To successfully innovate, organizations first need to achieve the bottom three steps of the Laudato Hierarchy of IT Needs: keep the lights on (KTLO), operate a lean and efficient IT Department, and create value for your business.