Information Risk And Its Effects On Financial And Investment Policies Essay

These factors create certain expectations and requirements for organizations, which in turns determine the organization's direction and strategy. Whereas internal environment is made-up of several internal subsystems. Internal subsystems work together systematically and drive the organization in the direction which is in conformity to external environment demands; thereby making the organization effective and a good fit with external environment. (McShane & Steen, 2012, p.6)

IT projects can have a lot of different components to them which creates the potential for more risks. These risks need to be identified, analyzed, and addressed as the project progresses (Schwalbe Ph.D., 2014). There are different types of risk that can affect the implementation of a system that will allow people to manage their own human resource information. A positive risks can produce a project under budget or ahead of schedule, while a negative risks can have adverse effects on a project such as going way over budget. There are also some risks that do not have a positive or negative impact on a project. Identifying risks and addressing them is mostly handled by the program manager.

* Factors of internal environment include risk management philosophy, risk appetite, board of directors, etc.

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Align strategy and corporate culture: The WP management team will create better risk awareness by using ERM. Also, a positive and open culture with respect to risk and risk management will be created as well. This will make every people at every level in WP to participate into the risk management activity which will be a huge benefit to WP and its employees.

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)

There are forces which exist in the General environment with which Brinker International (BI) would have to deal with. Forces such as Economic, Technological, Socio-Cultural, Demographic, Political and Global which exist in the general environment adds another dimension and could affect the organizations day to day operations. Managers would need to consider the impact of these forces.

It is defined as all the forces or conditions that are available within an environment that affects an organization and business. It is also known as controllable factors because business can control them. The internal environment deals with the management of resources like human resources, physical resources, technology, monetary resources and others that constitute the organization in order to implement or execute a strategy. Internal environment also includes culture and other intangible aspects like teamwork, coordination, efficiency level of employees, employee’s salaries and monitoring costs. The strategy for competition should also be in sync with the internal resources especially the internal environment.

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)

Internal Environment is the review that looks at the company operations, internal guidance as well as mission. Internal environment does consist of the value – chain analysis as well as the research based view tool.

Information security professional’s job is to deploy the right safeguards, evaluating risks against critical assets and to mitigate those threats and vulnerabilities. Management can ensure their company’s assets, such as data, remain intact by finding the latest technology and implementing the right policies. Risk management focuses on analyzing risk and mitigating actions to reduce that risk. Successful implementation of security safeguards depends on the knowledge and experience of information security staff. This paper addresses the methods and fundamentals on how to systematically conduct risk assessments on the security risks of information systems.

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is

The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis

As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated employees who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability. Another factor to consider is all the capabilities that a company possesses. The tool used to monitor them is the resource based