Risk Management Matrix

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RiskManagement Matrix

InstitutionalAffiliations

Riskmanagement in any organization entails the strategies employed intackling the threats related to their operations through specificmethods as well as techniques within the bounds of the objectives.The risks refer to factors, elements, constraints as well as coursesof action that bring about uncertainties of outcomes and impacts tothe organization’s goals. However, handling these risks involvesmanaging the threats that bring about negative consequences as wellas opportunities bearing positive benefits (Samadi et al. 2014). Mostimportantly, management of these risks entails the identification,analyses, and treatment of the potential threats. The present studyfocuses on management of risks involved in a particular organizationwith possible action strategies aimed at alleviating the situation.The risks will be identified in terms of how they bring aboutthreats, their probability of occurrence and action plans to avoid orresolve the encounters (Samadi et al. 2014).

Area of Risk

Description

Probability of Occurrence

Impact

of Occurrence

Strategy for Mitigation

Contingency Plan

Strategic

Lack of standardization which may lead to failure in enforcing control of data creation and access.

3

3

Mitigation

Centralization of the management roles to allow outreach to modernized customers as well as tracking of services (Samadi et al. 2014).

Business

An antiquated system that offers inflexibility and inability of supporting substantial business growth.

3

3

Mitigation

Development of a centralized data location

Feasibility

Challenges in merging and integrating new sections into the business that may require more staff.

4

4

Avoidance

Adoption of Financial Force ERP in the integration of existing business processes. Employee training as well as network systems

Capability to Manage Investment

Lack of electronic order capability and trend analysis of customers as well as pricing

3

3

Mitigation and transference

The creation of central data storage as well as an access system

Organization and Change Management

Employee engagement and morale

2

2

Transference

Hire a communication consultant who will build an internal communication strategy: www.consultingsucces.orgAPCC$120 an hour

Dependencies and Interoperability

Reliance on the existing business processes

2

2

Mitigation and avoidance

Employee training and network systems to ensure interoperability

Security: Cyber security

Third-Party Data Handling

3

2

Avoidance/mitigation

Avoidance: Establish data handling procedures and ensure that any third party sign off and agrees on the required procedures. (Samadi et al. 2014) Mitigation: in the case of a breach in the data offer all affected elements free credit monitoring services for a year.

Surety (Asset Protection)

Lack of compliance with the security standards for data collection

3

3

avoidance

Building systems in accordance with the company standards to facilitate regulatory security software upgrade.

Privacy

Insufficient security measures in the collection of data and privacy standards.

4

4

Avoidance

Development of security systems with the ability to collaborate real-time, share files and data across geographical gaps as well as data manipulation from remote sites in a secure central data repository (Samadi et al. 2014).

Project Resources

Interference in the external interface as well as input validity check

2

2

Transference and avoidance

Ensure that input of data by external users returns an error message with the aim of building a level of confidence

Schedule

Interference in the various stages of data input, processing, output, and storage.

3

3

Acceptance

Development of s system that ensures security, encryption of the information as well as real-time processing.

Initial Cost

The initial cost entails $11, 927.04 which may face challenges such as unforeseen changes in the price of services

2

2

Avoidance

Consistent upkeep and prevention of network devices that may deter these costs.

Life Cycle Cost

Unforeseen costs in ensuring the system operate efficiently throughout the targeted time

3

3

Mitigation

Regular upgrade and utilization of up-to-date software in deterring the increment of costs.

Technical Obsolescence

Inability to support an appropriate number of concurrent employees as well as store data for a suitable period.

2

2

Mitigation

Expand the system’s ability to support more concurrent employees and store data for the desired period.

Technology Environment

Insufficiency in accessing data based on the available access points.

3

3

Mitigation

Install wired access points with improved and faster data rates to facilitate real-time access. Install Wi-Fi access points

Reliability of Systems

Failures and theft might emerge based on external access and third-party data handling

3

3

Avoidance

Development of a system with the ability to accept inputs and maintain relationships between objects. Categorization of processes carried out.

Data and Information

Cybercrime, hacking, espionage

3

3

Mitigation and avoidance

Develop security channels to safeguard the information from landing in the wrong hands. Improved processing of data acquired to produce information on time.

Overall Risk of Investment Failure

Delivery of poor services and equipment that fails to serve the desired purpose

2

2

Avoidance and mitigation

Proper analysis and determination of the expected outcome from the installation of equipment and strategies to improve the company’s profitability.

Conclusion

Thefinal steps towards an effective risk management strategy entailselection of what threats to actively prioritize based on the levelof the impact level. These should be followed closely bydetermination of whether to perform a qualitative analysis,communication plans required as well as types of the frequency ofreporting and monitoring (Samadi et al. 2014). The risk managementstrategy described above portrays a guidance towards eliminating,alleviating and rectifying the potential threats within theorganization. Some of the significant risks identified includeinsufficient data protection systems that would prevent third partyusers from accessing the organization’s information. Similarly, thefirm lacks sufficient security measures in the collection of data andprivacy standards. However, it employs various measures such asmitigation, avoidance, transference, just to mention but a few aimedat safeguarding their operations and ensuring credibility (Samadi etal. 2014).

References

Samadi,&nbspH.,Nazari-Shirkouhi,&nbspS., &amp Keramati,&nbspA. (2014).Identifying and Analyzing Risks and Responses for Risk Management inInformation Technology Outsourcing Projects under FuzzyEnvironment.&nbspInt.J. Info. Tech. Dec. Mak,&nbsp13(06),1283-1323. Doi: 10.1142/s021962201450076x

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