Information technology is a vital component of organizations, to such an extent that information and data generated by organizations are considered assets. Technological advancements have made organizations realize the importance and benefits of IT and thus, as the importance of information and data has increased, so have the risks associated with the handling of data.
Organizations with integrated and functional IT departments need IT risk management as much as they require risk management for their finance and treasury departments. IT functions have become so integrated with other business functions and departments that without appropriate risk management for IT, the overall risk management of the organization would be incomplete and remain compromised.
IT risk management programs are designed to execute, manage, identify, control and report the risk areas associated with each system. As mentioned above, IT risk management is essential for an organization’s overall risk management and efficiency in operation. Without it, an organization would be vulnerable and susceptible to risks and threats that could cripple its data security and create compliance issues.
Risk management steps include:
· Risk identification
· Risk assessment
· Risk mitigation
· Response development
· Contingency plan
· Review and monitoring
IT risk management on its own, however, is incomplete if not followed with the design and implementation of appropriate control measures to protect systems and data. Thus, an effective risk management system is not a one-time activity but a continuous process.