Every organization faces unexpected turbulence. The gusts may come in the form of hardware and malware malfunctions, careless employee errors, or any other type of disruptive incident. Ignoring the vulnerabilities of information securities and the countless regulatory compliances can end up causing serious expenses and damage to an organization. With a strong IT risk management software tool in place, organizations can protect their data, optimize workflow, and stay up to date with compliance and contract management. It’s the smart way to run a business.
Technically Speaking….What is Risk?
What exactly is risk? Well, by looking at decision theory we can assume the following: Risk = (Likelihood x Impact). In IT specifically, we can quantify risk by looking at asset value, threat level, and vulnerability. This gives us: Risk = Assets x Threats x Vulnerabilities. You might be wondering what the difference between threat and vulnerability is, and how to classify each in your own organization. Generally, threats cannot be controlled proactively (examples: mass email viruses, power outage). On the other hand, vulnerability can be controlled and treated with proactive measures (examples: old hardware, weak personnel).
Risk Assessment vs. Risk Management
Risk assessment is the analysis and identification of the levels of risks across an IT organization. Whether this is done by an employee or by a sophisticated risk detection software engine, this is only the first step in a bigger process known as risk management. By actually managing risk, organizations can institute countermeasures to mitigate it. Strong IT risk management software can automate much of this process, essentially becoming an indispensable agent on the front line of your organization. Therefore, risk assessment alone is not enough, and organizations must be more forward-looking, and prepare to actually mitigate and resolve the assessed risks. The best way to build out this functioning process is through an IT governance risk management software tool that exploits operational synergies with your IT service desk.
IT risk is a force to be dealt with. Next time your organization faces a risk that pushes your operations out of bounds, make sure you have a strong risk management tool that has your back.