Identifying Issues in Risk Management

Identifying Issues in Risk Management Today's techno savvy business enterprises are equipped with world class IT infrastructure and a host of software applications that help them manage the day-to-day business operations. Such an environment communicates digitally and connects with various establishments through wide corporate networks. Further, technological enhancements like the cloud and mobile technology facilitates the workforce, vendors and end-users easy access to the digitally stored data. Through all these techno-centric process risks becomes an inherent part of the business operations.

With globalization paving way for business expansions, most enterprises make use of the services of data center service providers to handle the vast volumes of data transactions and storage. However, with technology enabling BYOD options for anytime anywhere access to corporate data, the data center service providers are concerned with the operational risks. To encounter the risks brought in by uncertainties of operational decisions, cyber intrusions, data theft and power wattage enterprises therefore need to have an efficient IT risk management plans. However, a proactive understanding of the issues in risk management will help to determine the ways to handle the identified risks and reduce the potential data loss and diminished quality of service.

Wikipedia defines risk management as “the identification, assessment and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities�. With data leakage being the main risk factor in the business environment and 80% of web applications found to be vulnerable, the accessibility options offered through technology enhancements have become a major cause for worry. The leading service providers of risk and compliance management help enterprises to deal with the ever-growing risks to information through their risk management frameworks.

The introduction of newer regulations for risk management framework, have helped to bring out the issues in risk management and compliance management programs that are deployed. The most commonly faced issues in risk management include: Use of multiple and heterogeneous processes and tools for handling compliance, security, privacy of data, business continuity, audit, and IT risks within the same enterprise environment.

Discretionary compliance requirements to business units that are not provided risk-based options Lack of centralized reporting leading to duplication in risk reporting Ill-defined compliance criteria and inconsistent metrics.

Lack of awareness among the end-users Nevertheless, understanding these issues in risk management frameworks will help enterprises to prudently deal with risks by consolidating and rationalizing the diverse programs into a single integrated risk management and compliance program. This will not only help in bringing consistency but also enable to efficiently manage risks with reduced costs.

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