Cloud adoption challenge of a CIO - A case of a capital market industry

The adoption of Software-as-a-Service (SaaS) cloud solutions by organizations is strongly influenced by how decision makers perceive potential benefits and risks. Research indicates that anticipated negative outcomes often weigh more heavily on such decisions than perceived advantages. This teaching case uses a case study approach to examine the decision-making process in a highly regulated industry sector characterized by low risk tolerance. It shows how perceived risks – when managed within a robust organizational governance framework – can positively influence the adoption of high-risk technologies like SaaS. Based on Prospect Theory and the IT Governance framework, the case explores the factors that contribute to perceived risk and how governance practices impact the adoption decision. In a regulatory-heavy environment, risk aversion among decision makers is typical. Therefore, a structured approach to risk identification, assessment, and response planning is essential to objectively evaluate organizational risk and support an informed SaaS adoption decision.