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Westerman fm.qxd6/1/073:19 PM Page George Westerman Richard Hunter IT Risk Turning Business Threats into Competitive Advantage Harvard Business School Press Boston, MassachusettsExcerpted from IT.
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Cardsystems FAQ
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Definition of Risk Management Policy Identify risks to the organization. Prioritize risks in terms of magnitude and immediacy. Design measures to avoid or minimize risks. Seek new opportunities created by risk-based situations.
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Determine existing technical procedures and controls. Conduct a business impact analysis. Identify risk management strategies that apply to your particular organization. These strategies can include acceptance, avoidance, transference, cybersecurity insurance and mitigation. Identify impacts on business processes.
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IT risks include hardware and software failure, human error, spam, viruses and malicious attacks, as well as natural disasters such as fires, cyclones or floods. By looking at how your business uses IT, you can: understand and identify the types of IT risks. understand the impact of risks on your business.
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Competitive risk is the potential for a business's competitors to prevent its growth and success. Since many companies compete for the same target customers and distributors, they may take measures that prevent similar enterprises from entering new markets and reaching customers.
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ISO 27001 requires all risks to have an owner responsible for approving any risk treatment plans and accepting the level of residual risk. The person who owns risk treatment activities may be different from the asset owner.
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It is a part of enterprise risk management. Essentially, technology risk management aims to identify potential technology risks before they occur, and then implement a plan to address those technology risks. Risk management looks at the internal and external technology risks that could hurt a company.
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A comprehensive IT risk management policy will set the governance of how an organization and its employees use and interact with data and technology by: Identifying information security assets. Calculating current and potential risks and the costs necessary to mitigate them. Assigning a cost to information risks.
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An effective risk management process is an important component of a successful IT security program. The principal goal of an organization's risk management process should be to protect the organization and its ability to perform their mission, not just its IT assets.
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