Information Technology Risk Management
Risk management is the continuing method to recognize, examine, appraise, and treat loss exposures and monitor risk control and financial resources to diminish the adverse effects of loss (Marquette).
Every company has a goal. In this internet age, as companies use computerized information technology systems to manage their data for better support of their goals, risk management plays a crucial role in defending a company’s information technology‘s resources and its goals from information technology’s risk. A successful risk management method is an important component of an effective information technology security program. The primary goal of a ...view middle of the document...
This is what my wife and I have done. Although it seems that it is a waste of money as years go by and it is not needed until the one time it is and if you do not have it. It would be worth it to have paid for it for all those years you did not need it.
The head of a company division must guarantee that the company has the abilities needed to accomplish its goals. These goal owners must govern the security abilities that their information technology structures must have to provide the desired level of operational support in the face of real world threats. Most companies have very little resources for information technology security; therefore, information security spending must be studied as thoroughly as other management decisions (Stoneburner). A well-structured risk management system, when used successfully, can help management recognize suitable controls for providing the operation-essential security capabilities.
One should not view risk management as a compliance inconvenience. Companies with successful risk management are better equipped to deliver enhanced, consistent, and persistent performance over the long term. They are prepared for what might happen to not only alleviate the effect of undesirable situations or events but also take full advantage of opportunities. For example, these companies are prepared for a natural disaster that disrupts the supply chain as well as for the opportunity created when a competitor that wasn't prepared has product-quality issues (Marks).
Risk assessment is the first method in the risk management methodology. Company’s use risk assessment to determine the extent of the potential threat and the risk associated with an IT system. To determine the possibility of a future undesirable event, threats to an information technology system must be examined in conjunction with the potential vulnerabilities and the controls in place for the information technology system. Impact refers to the amount of harm that could be caused by a threat’s exercise vulnerability.
Risk mitigation, the second process of risk management, involves ranking, appraising, and applying the appropriate risk-reducing controls suggested from the risk assessment process. Because the removal of all risk is usually impractical or close to impossible, it is the duty of senior management, functional and business managers to use the least costly tactic and execute the most appropriate controls to reduce operational risk to an acceptable level, with negligible undesirable impact on the company’s assets and goals.
Evaluation and assessment is next in risk management mitigation. In most companies, the network itself will continually be extended and modernized, its components changed, and its software applications changed or modernized with newer versions. Also workforces changes will occur and security policies are likely to be adjusted over time. These changes mean that new hazards will appear and threats earlier alleviated may again...