The Importance Of IT Risk Management Training Program

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

Usually, the most common risk management strategies can be subdivided into multi-stage approach in order to obtain a better impression of the underlying risks and thus to increase the probability of mitigating the firm’s risks properly and successfully. Also General Motors Corporation has developed various rules and guidelines to help manage minimize the risks associated with their business and investment operations.

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

The Senior Management of the Defense Logistics Information Services (DLIS) has decided to update the previous risk management plan with a developing, new risk management plan. This new risk management plan will not only minimize the amount of risk for future endeavors, but will also be in compliance with regulations such as the Federal Information Security Management Act (FISMA), Department of Defense (DOD), Department of Homeland Security (DHS), National Institute of Standards and Technology (NIST), Control Objects for Information and Technology (COBIT), and Information Assurance Certification and Accreditation Process

How does Department of Homeland Security Enterprise manage to satisfy on the shareholders, risk management. Risk management is defined as “a systematic and analytical process to consider the likelihood that a threat will endanger an asset, individual, or function and identify actions to reduce the risk and mitigate the consequences of an attack” (Decker 2002, page 1). Risk management acknowledges that “threats and risks will never be completely eliminated, but enhancing protection from known or potential threats can reduce it” (Decker 2002, page 1).

The Department of Homeland Security (DHS) Risk Lexicon (2010) states that “risk is a key organizing principle for homeland security strategies, programs, efforts, and activities” (p. 1). This means that risk management is a decision making tool that allows for the DHS to intelligently and efficiently make planning choices based on threat level priorities. Some of the choices that are made using risk management are where to allocate both physical and financial resources, types of training initiatives for a specific threat, technological initiatives and strategic planning for risk mitigation and asset defense.

Risk management includes the “overall decision-making process of identifying threats and vulnerabilities and their potential impacts, determining the costs to mitigate such events, and deciding what actions are cost effective to take to control these risks” (Conklin et al, 2012, pg. 678). For the proper development of risk management techniques, every person at every level of the organization, especially those involved in the Information Security (IS) department “must be actively involved in the following activities:

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

This paper discusses three risk analysis methodologies, specifically, MSRAM, OCTAVE, and CRAMM and provides a detailed description of each and how they incorporate risk into a platform for decision makers to use in their endeavors to prevent, protect, mitigate, respond, and in recovery measures as part of the risk assessment and management processes.

General George Patton was quoted as saying, “Take calculated risk. That is quite different from being rash.” Great success can be obtained by calculating risks. Lives can be saved, infrastructure protected, and evil avoided, but how does one calculate risk? The Department of Homeland Security (DHS) has developed a risk management system to help address risks, primarily terrorism risks. It is important to realize that this is a system. Comprising this system of risk management are some key steps, such as the risk assessment and decision making. The overall risk management process employed by DHS is still in a stage of evolution and provides many areas of debate.

Homeland security in United States comprises of complex and competing requirements, incentives, and interests that need to be managed and balanced effectively to achieve the desired national objectives. Security, resilience and safety of the country are endangered by different hazards such as cyberspace attacks, terrorism, manmade accidents, pandemics, natural disasters and transnational crimes which are part of external risks affecting homeland security. Internal risks such as projects costs, workforce management and acquisition operations also affect the security. Internal and external risks impact the country in diverse ways such as human death, environmental degradation, injuries, economic loss, among other negative impacts. Department of Homeland Security and other involved partners should be in a position to manage and understand the different risks to security. The security state current is dynamic and relying on past cannot completely inform decision making (CRS, 2007). Risk management therefore is a process of analyzing, communicating and identifying risk and avoiding, accepting, controlling or transferring the risk to acceptable limits considering benefits and costs of measures taken with the aim of ensuring improving security decisions.

Before Risk Assessment can be addressed we must first briefly discuss Risk Management (RM), the framework of which is where risk assessment resides for the United States Army. The Army uses RM to ensure mission accomplishment in current as well as future operations and applies to operations and non-operational activities (Department of the Army [ATP 5-19], 2014, p. 1-1). The Army process of RM utilizes five steps as part of its holistic approach to mitigate risks, but because this paper’s focus in on the Risk Assessment of the management solutions identified last week, it will only focus on the first two steps of RM, Identify the hazard and Assess the hazard.

Using risk management to expand the capacity in achieving the objectives of the Department of Homeland Security is critical to ensure the safety of the United States. In order to strengthen said objectives to fulfill its mission, the Department of Homeland Security created a Risk Management Fundamentals that provides a disciplined approach in the distribution and use of risk information across the entire department. Needless to say, the Department of Homeland Security plays a demanding aspect in leading the consolidated efforts through the management of the complex set of risks that face the United States on a day-to-day basis (Enterprise Risk Management Initiative, 2011).

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

*Nonetheless, in order to provide a structure for risk analysis, and to help with the allocation of the responsibility for managing the different types of risk, risks need to be categorized properly. In a manufacturing company the individual perspective of a risk management program would be to minimize injury to staff, to customers, or the local community. Otherwise, the focus may be on the financial risks, which is an important part of the business or the impact on shareholder financial returns. Many manufacturing businesses are motivated on keeping a good reputation, and any potential damage to the business reputation could have a long term effects, therefore, the risks could impact on the reputation of the organization which will need to be identified and controls implemented to reduce the potential risks. When a manufacturing business wants to understand and control their risks, every manufacturing process there will be a need for a