1. Introduction
The information resources protection has become more complex and challenging for organizations in a rapidly changing security threat setting. The adoption of cloud computing technologies by organizations, and the extensive use of internet services by customers for daily activities like bill payments, communication, banking, etc. are few examples illustrating the shifting technological scene in organizations. The shift towards these new technologies presents new risks to an organization’s information assets. Although, Information security standards like ISO27000 series suggests a diverse set of technical and process controls to protect an organization’s information assets, the standards acknowledges that the organization’s selection
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According to NIST (2011), Risk Management in is a comprehensive process involving four important components which are frame risks, assess risks, respond to identified risks and monitoring of risks. These four components ensure that risk management program is holistic, addressing risk ranging from strategic to tactical level, and also ensures integration of risk based decision making into all facets of an organization.
2.1 Frame Risks
Framing risks is the process of establishing a risk context that would help describe the environment that aids risk based decision making. Framing risks would help an organization develop a risk management strategy that holistically covers the approach it intends follow to assess and respond to threats. To establish a reliable and realistic risk frame, organizations needs identify the following
• Risk Assumption - Assumptions made about threats and vulnerabilities, and various other factors like consequence, likelihood of
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• Determine the risk response effectiveness post implementation.
• Identify how risk impacts changes the organization’s information system and landscape in which the systems operate.
• Risk monitoring also requires organizations to describe how it plans to verify its compliance with various laws and regulations.
3. Importance for Risk Management to Business Leaders
Business Leaders and managers are tasked with the responsibility of ensuring due diligence is performed while making decisions for the organization. Having a formal risk management program as part of the organization’s information security program provides the leaders a proper process and diligence before making important information security related decisions. The risk analysis helps managers to decide whether to go ahead with a new security program or not, while the risk assessment would help determine if the types of controls to be that needs to be implemented (Peltier, 2010). The risk assessment also helps identify the countermeasures to mitigate the risks, or help decide if it’s best to accept the risk rather than mitigate
Risk management is defined by the Department of Homeland Security (DHS) as “the process of identifying, analyzing, assessing, and communicating risk and accepting, avoiding, transferring or controlling it to an acceptable level considering associated costs and benefits of any actions taken” (DHS 2010a, p. 30). Raymond Decker, Director of Defense Capabilities and Management testified on behalf of the U.S. Government Accountability Office (GAO) before the Subcommittee on National Security, Veteran’s Affairs, and International Relations; House Committee of Government Reform, and further described risk management as the “systematic and analytical process to consider the likelihood that a threat will endanger an asset,
Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what
Risk Management As a financial institution in current volatile financial market, we engage in both commercial and investment banking activities and are registered to do business in Germany and the US. Our business are providing multi-product financial service to clients, such as understanding service and stock research, as well as the traditional funding and investment activities. Our company tries to provide high service quality, innovation. The most important is we remain the maximization of shareholders profit as the Board's aim forever. In order to perform the business efficiency and effective, normally the board is responsible for approving group's strategy, principle market and acceptable risk.
Rather, it is centered around comprehension the key risks an organization confronts then going for broke at the best time in the wake of utilizing the most suitable safety measures (Valderrey, 2016). Even in the best of times, in the event that you are to oversee risk successfully, you should make to a great degree decision making ability calls including information and measurements, have an unmistakable feeling of how all the moving parts cooperate, and convey that well. In the most noticeably awful of times, risk management can go into disrepair. Recorded models can come up short, liquidity can become scarce, and relationships can get to be more grounded all of a
Kouns, Jake and Daniel Minoli. 2010. Information Technology Risk Management in Enterprise Environments: A Review of Industry Practices and a Practical Guide to Risk Management Teams. John Wiley & Sons.
National security in the United States is extremely important and requires extensive risk management measures including strategic, exercise, operational and capability-based planning, research, development, and making resource decisions in order to address real-world events, maintain safety, security and resilience (Department of Homeland Security [DHS], 2011). The national security and threat assessment process consists of identifying the risk and establishing an objective, analyzing the relative risks and environment, exploring alternatives and devising a plan of action for risk management, decision making and continued monitoring and surveillance (DHS, 2011). Identifying risks entails establishing a context to define the risk, considering related risks and varying scenarios, including the unlikely ones, which then leads to the analysis phase; gathering data and utilizing various methodologies and analysis data software systems to survey incidence rates, relative risks, prevalence rates, likelihood and probable outcomes (DHS, 2011). These two key phases lay the foundation to explore alternatives and devise action plans. Threats, vulnerabilities and consequences (TCV) are also a key component of many national security risk management assessments because it directly relates to safety and operation capabilities, but the text stress that it should not be included in the framework of every assessment because it is not always applicable (DHS, 2011).
Organizations face risk from many angles, including internal and external financial, infrastructure, reputational and marketplace risks (IRM, 2010). Risks with positive impact are known as opportunities, while risks with negative consequences are called hazards (ISO/IEC, 2008). Risk can impact an enterprise at all levels: strategic, tactical (also known as program or project risk) and operational (IRM, 2010).
Five steps are there which are taken in the process of risk management that are risk recognition, risk analysis, risk treatment, execution, and monitoring the results. With the help of this risk, the potential risks are determined in relation to accidental loss along with analysing and executing the techniques of risk management that are best (Flin, Burns and Mearns). The risk management is the appropriate manner to maintain the health and safety of staff and clients. Moreover, quality management in the risk management assists in protecting the staff and client (Gershon, Karkashian and Grosch). Quality risk management assists the facility in determining the red flags among client care, which must be enhanced.
Enterprise risk management consists of eight interrelated components. These are derived from the way management runs an enterprise and are integrated with the management process. These components are:
These risks will have material effect on the organisation 's ability to sustain its business and operational goals and objectives.
Identify the potential risks which affect the company and manage these risks within its risk appetite;
... should be designed to reflect current hazards and unexpected future uncertainties. Moreover, the process of risk framework should be able to reflect costs and benefits before making a decision to remove threats.
As the first step, identify potential risks plays a crucial role in the risk management process. The core purpose of identifying risk is to figure out causes of risk and analyze result caused by the risks and its probability . Hence, risk identification can begin with the source of problem, or with the problem itself. The chosen method of identifying risk may depend on culture, industry practice and compliance. The identification
Risk mitigation is also the process of controlling actions, which are identified, and selecting the suitable ones to reduce risk according to project objectives (Pa, 2015). Risk mitigation is important in IT organizations in so many ways. According to Ahdieh, Hashemitaba, Ow (2012), mitigation of risk provides a mechanism for managers to handle risk effectively by providing the step wise execution of the risk handling (as cited in Pa, 2015, pg. 49). Some risks, once identified, can readily be eliminated or reduced. However, most risks are much more difficult to mitigate, particularly high-impact, low-probability risks. Therefore, risk mitigation and control need to be long-term efforts by IT project managers throughout the project lifecycle. There are three types of risk mitigation strategies that hold unique to Business Continuity and Disaster
The importance of enterprise risk management is to ensure that the program is not managed in individual departments, but rather utilizing a holistic approach. According to Fraser & Simkins, in the text, Enterprise Risk Management, the common result of a stove-pipe approach to risk management is that risks are often managed inconsistently these risk may be effectively managed within an individual business unit to acceptable levels, but the risk treatments or lack thereof selected by the manager may unknowingly create or add to risks for other units within the organization. This stove-piping or silos as we understand it at University of Saint Mary create major rifts and