The Risks of Legacy Systems

From cybersecurity vulnerabilities to high costs, legacy systems come with a host of risks. Learn more about these challenges, along with a strategy to overcome them.

“Legacy systems may have served businesses well in the past, but in the context of modern digital transformation, they represent a significant risk,” reports ERMA, a provider of risk management education. “The costs of maintaining outdated infrastructure—whether in terms of cybersecurity, compliance, or innovation—are too high to ignore.”

Common challenges include:

• Legacy systems lack current security protocols.
• Vendor goes out of business, rendering software unstable.
• Overwhelmed state IT unable to fix software problems promptly.
• Inadequate role-based security places sensitive data at risk.
• Failure to adopt browser-based software limits ability to work remotely.

Outdated Software: A Known and Growing Operational Risk

For state licensing and permitting agencies, outdated regulatory software presents serious and escalating operational risks that affect their ability to serve the public efficiently and reliably. Aging systems often struggle to handle modern workloads, integrate with new technologies or adapt to evolving regulatory landscape. These limitations directly hinder an agency’s ability to process licenses, permits and renewals in a timely and accurate manner.

Ultimately, these operational failures result in:

• Delays in license and permit issuance, which disrupt businesses, contractors, and professionals who depend on timely approvals.
• Higher operational costs, as staff spend more time on manual processing, error correction, and workaround procedures.
• Increased risk of non-compliance, as outdated systems fail to support current legal or regulatory compliance, exposing the agency to audit findings or enforcement actions.
• Loss of public confidence, as citizens and regulated industries grow frustrated with slow, unreliable government service.

Modern, flexible software platforms eliminate these risks by streamlining workflows, supporting remote work, scaling for demand surges and adapting quickly to regulatory changes.

Modernization Is No Longer Optional

Outdated systems present more than just an inconvenience—they introduce measurable risk to data security, operational continuity, and public trust. The National Institute of Standards and Technology (NIST) states that “secure, modern software platforms enhance agency resilience, support compliance requirements with cybersecurity mandates and reduce exposure to advanced persistent threats.”

Modern, browser-based systems with robust security and flexibility help agencies with today’s challenges—whether that means processing unemployment claims, issuing licenses or managing sensitive regulatory data.

Regulatory Software Features to Look For:

When selecting modern regulatory software for your agency, certain features prove essential for ensuring security, flexibility, scalability and long-term success. These features not only protect sensitive data but also improve usability, support agency growth, and enhance operational efficiency.

1. Fully Configurable Role-Based Security

Modern systems must allow administrators to define and control user access based on specific job roles and responsibilities. Role-based security enables agencies to:

• Limit access to confidential or sensitive data to only authorized personnel.
• Create customizable permission groups that define who views, edits, creates or deletes information.
• Adjust user privileges quickly as job functions or staffing needs change.
• Ensure compliance with federal and state data protection standards (such as HIPAA or CJIS requirements), reducing the risk of accidental data exposure or insider threats.

According to the NIST, role-based access control remains a critical best practice for reducing security risks in public sector software systems.

2. Encryption of Data at Rest and in Transit

Secure software must protect sensitive data both in storage (at rest) and during transfer across networks (in transit).

3. Scalability to Support Future Growth

Your regulatory agency’s needs and processes evolve over time. Software must scale—without degradation of performance—to handle:

• Increases in the number of users, such as new staff, inspectors or contractors
• Rising transaction volumes, including application processing, renewals or public queries
• Expanded services, such as new types of licensing, permitting or regulatory oversight

A scalable platform lets your agency grow confidently without the need for expensive system replacements or disruptive data migrations.

4. Integrated Project Management Services

Effective vendors provide more than just software—they deliver project management expertise to guide implementation and long-term success. Look for:

• Implementation Planning: detailed project plans that align with your agency’s goals, timelines and regulatory updates
• Training and Onboarding: resources and instruction to ensure that staff understand and use the system effectively
• Ongoing Support: access to technical assistance and regular system updates or enhancements
• Continuous Improvement: tools for collecting user feedback and making iterative improvements based on evolving agency needs

Successful project management ensures smooth transitions from legacy systems, reducing downtime and minimizing operational disruptions.

5. Browser-Based Accessibility

Modern regulatory software must be accessible via common web browsers; these browser-based platforms enable:

• Remote Work Readiness: Staff securely access systems from anywhere—whether in the office, at home or in the field.
• Device Flexibility: Compatibility with desktops, laptops, tablets and smartphones, these systems offer operational continuity during emergencies or travel.
• Reduced IT Overhead: Browser-based systems simplify maintenance and updates.

6. Audit Trail and Reporting Tools

Comprehensive audit functionality enables agencies to:

• Track user activity, including logins, data changes and transaction processing.
• Detect and respond quickly to unauthorized or unusual system behavior.
• Generate reports that demonstrate compliance with regulatory and audit requirements.

Built-in reporting capabilities allow leadership at your regulatory agency to monitor system performance, spot trends and make informed decisions based on real-time data.

7. Customizability and Configuration Options

The best systems allow configuration to:

• Tailor workflows to match agency processes.
• Customize forms, fields and user interfaces.
• Incorporate state-specific laws, policies and administrative rules.

Configurable systems adapt as policy or legislation changes within the regulatory framework—helping agencies stay compliant without costly software overhauls.

8. Disaster Recovery and Business Continuity Features

Robust disaster recovery capabilities ensure your system remains operational even during unexpected events such as cyberattacks, natural disasters or infrastructure failures. Critical features include:

• Automated Backups: Regular, encrypted backups of data, stored in secure, geographically diverse locations.
• Failover Systems: Immediate switch-over to secondary systems in the event of a primary system failure.
• Recovery Testing: Routine validation of recovery processes to ensure the agency can restore operations swiftly and accurately.

These measures protect against data loss, minimize downtime and support uninterrupted public service delivery.

Ryan Pedersen

Chief Technology Officer Ryan Pedersen is an expert in technical solutions to industry needs. Ryan joined GL Solutions in 2010 as a developer and subsequently managed the development team for several years. He has served since as Vice President for Operations and Vice President for Business Solutions and currently works as Chief Technology Officer.