Which steps should an organization take to avoid risk when dealing with software licensing?

The primary safeguard against licensing risk is ensuring the organization has thecorrect type of license. Software licenses define usage rights, limitations, and legal obligations. Using software outside of license terms can lead to legal penalties, financial fines, and reputational damage.

Location of licenses is a management issue, not a risk control. Restricting usage to closed-source or open-source alone is not practical, as both models require compliance with license agreements.

Correct licensing includes verifying user counts, subscription terms, geographic restrictions, and intended use. It also involves monitoring for unauthorized installations and conducting regular audits. Proper license management ensures legal compliance, cost control, and operational continuity.