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Digital considerations for business succession planning 

On Behalf of | May 30, 2023 | Estate Planning

If you own a business, chances are that you conduct a significant amount of your company’s financial transactions, ordering and advertising online. You probably conduct a significant amount of your business electronically, as well. As a result, it is going to be important for you to consider this digital reality when you’re engaging in business succession planning

If you overlook the digital and otherwise electronic side of your business, you could leave your company and your legacy vulnerable to a host of negative outcomes. 

Key considerations

Digital considerations play a crucial role in business succession planning, particularly when it comes to data security and access control. The smooth transition of digital infrastructure is a critical aspect of business succession planning. Keep the following in mind as you approach business succession planning:

  • Data Backup and Recovery: You’ll want to make sure that your business has a robust data backup and recovery system in place. This will help to ensure that critical information is protected and can be easily accessed and restored during the succession process.
  • Access Control and Permissions: Review and update access control protocols to better ensure that only authorized individuals have access to sensitive business information. Implement strong authentication mechanisms such as multi-factor authentication and role-based access control to safeguard data from unauthorized access or misuse.
  • Digital Asset Inventory: Take inventory of all digital assets owned by the business, including software licenses, domain names, social media accounts and intellectual property. Document the necessary login credentials, account details and ownership information for each asset. This information should be securely stored and made available to designated individuals involved in the succession planning process.
  • Knowledge Transfer and Training: Plan for the transfer of digital knowledge and skills necessary for managing the business’s digital infrastructure. Document standard operating procedures, IT configurations and any unique software configurations to assist the successor in maintaining and managing the systems effectively. Provide adequate training and support to ensure a smooth handover.

By addressing these digital considerations, businesses can better enhance the security of their data, manage the continuity of digital operations and facilitate a smooth transition of technology infrastructure during the succession planning process.