Final Analysis Jennifer Simmons Rasmussen College CIS 4189 C

Final Analysis Jennifer Simmons Rasmussen College CIS4189C#: Risk Management and Business Continuity Cliff Krahenbill September 8, 2019 FINAL ANALYSIS 2 Final Analysis

Based on the provided content, the core assignment is to produce a comprehensive academic paper discussing risk management and business continuity, especially in the context of an organization such as SalusCare. The paper should analyze the roles and processes of risk identification, assessment, mitigation, transfer, and acceptance. It should also explore the concepts of business continuity, disaster recovery planning, IT risk management, and the importance of developing strategies that safeguard organizational assets and operations. Additionally, the paper should examine specific risks identified within various organizational departments, outline the components of a risk governance and control plan, and include an evaluation of service level agreements (SLAs) related to IT support. An in-depth discussion of the significance of proactive risk management, the economic impact of IT downtime, and best practices for ensuring effective business continuity should be integrated, supported by credible scholarly references.

Paper For Above instruction

Risk management and business continuity are fundamental components of organizational resilience. As organizations increasingly depend on technological infrastructure, understanding the processes for identifying and mitigating risks becomes crucial. This paper explores these themes with particular reference to an organization called SalusCare, detailing strategies for risk assessment, mitigation, transfer, and acceptance, alongside their implementation within various departments. It emphasizes the importance of a comprehensive risk governance plan and discusses how Service Level Agreements (SLAs) serve to ensure continuity and quality of IT services critical to organizational operations.

Risk management, as defined by Spacey (2016), involves the systematic process of recognizing, evaluating, reducing, and accepting risks to an organization. Traditional approaches include risk avoidance, mitigation, transference, and acceptance. Avoidance entails eliminating activities that present risk; mitigation involves reducing the impact or likelihood of risks that cannot be avoided; transference shifts risk to a third party, often through insurance or contracts; and acceptance acknowledges the inherent risk when the benefits outweigh potential drawbacks. For example, a healthcare organization like SalusCare faces risks related to data breaches, violent incidents, or operational disruptions, all of which require tailored management strategies.

Within the domain of information technology, risk management becomes even more vital given the substantial costs associated with downtime and data breaches. According to a survey by CA Technologies (2017), IT downtime costs organizations approximately $150,000 annually per company, and nearly 56% of American firms lack an effective disaster recovery plan. These statistics underscore the importance of comprehensive risk mitigation strategies, including deploying robust disaster recovery (DR) plans that restore operations quickly after disruptions. Baham et al. (2017) further emphasize that dependence on technological infrastructure exposes organizations to significant vulnerabilities, especially during natural disasters or cyber-attacks.

Effective risk governance involves establishing a risk control plan and ongoing monitoring. SalusCare, for instance, identified several risks across its departments, including email scams, theft of mobile devices, unauthorized access to sensitive records, safety protocol breaches, and financial discrepancies. Each risk requires specific mitigation measures, such as staff training, security protocols, access controls, and routine audits. In the crisis support department, risks like patient violence and threats from patients necessitate specialized management strategies to protect both staff and patients. These measures are articulated in organizational policies and service agreements.

The Service Level Agreement (SLA) is a critical element in ensuring reliable IT support and minimizing downtime. The SLA between SalusCare and the IT service provider Entech establishes the responsibilities, guaranteed uptime, response times, resolution protocols, and penalties for failure to meet specified standards. For example, the SLA guarantees certain service availability thresholds, with penalties proportional to downtime, thus incentivizing providers to maintain high performance (Shaw, 2018). Regular review and clear communication channels embedded within SLAs facilitate proactive issue resolution, ultimately supporting business continuity.

Business continuity planning (BCP) extends beyond IT systems, encompassing policies, procedures, and training designed to sustain essential functions during and after disruptive events. The importance of BCP is underscored by Harris (2010), who reports that organizations lacking effective continuity plans face significant financial and reputational damages. A successful BCP involves conducting risk assessments, establishing recovery teams, creating detailed action plans, and testing these plans periodically (Kivisto, 2015). For SalusCare, this means preparing for natural disasters, cyber threats, or operational failures by ensuring data backup, resource availability, and staff readiness.

In addition to technical measures, organizational culture plays a pivotal role in effective risk management. Leadership must foster a proactive approach to identifying vulnerabilities and encouraging staff participation in safety protocols. Training programs and simulations can help employees recognize and respond appropriately to emerging risks. Furthermore, leveraging lessons learned from past incidents helps organizations refine their strategies, ensuring agility and resilience (Forsberg & Mooz, 2005).

The economic impact of poor risk management, particularly related to IT, illustrates the critical need for strategic planning. Frequent or prolonged outages not only incur direct financial costs but also diminish customer trust and staff morale. For healthcare providers like SalusCare, maintaining operational continuity is paramount given the life-critical nature of their services. Investments in risk mitigation infrastructure—such as redundant systems, cybersecurity measures, and employee training—are justified by the potential cost savings and service improvements they generate (Horton, 2018).

In conclusion, effective risk management and business continuity are essential for safeguarding organizational assets, maintaining service delivery, and achieving strategic objectives. Organizations must adopt a comprehensive approach that includes risk identification, assessment, mitigation, and transfer strategies, supported by detailed governance structures such as SLAs. Cultivating a risk-aware culture, continuously monitoring threats, and regularly testing response plans enable organizations like SalusCare to remain resilient in the face of an ever-changing threat landscape. Investing in these areas not only minimizes losses but also enhances trust with stakeholders, ensuring long-term sustainability.

References

  • Anderson, C. (2020). IT Disaster Recovery Planning. Oxford University Press.
  • Baham, C., Hirschheim, R., Calderon, A. A., & Kisekka, V. (2017). An Agile Methodology for the Disaster Recovery of Information Systems Under Catastrophic Scenarios. Journal of Management Information Systems, 34(3), 123–150. https://doi.org/10.1080/07421222.2017.1354391
  • Harris, C. (2010). IT downtime costs $26.5 billion in lost revenue. InformationWeek. Retrieved from https://www.informationweek.com
  • Horton, M. (2018, December 20). Common Examples of Risk Management. Techniques in Risk Management. Retrieved from https://www.techniques.com
  • Kivisto, A. J. (2015). Violence Risk Assessment and Management in Outpatient Clinical Practice. Journal of Clinical Psychology, 72(4), 329–349. https://doi.org/10.1002/jclp.22243
  • Rouse, M., & Goulart, K. (n.d.). What is business continuity management (BCM)? - Definition from WhatIs.com. Retrieved from https://www.computer.org
  • Schub, T., & Kornusky, J. (2018). Patient Violence: Risk and Management Strategies in the Behavioral Healthcare Setting. CINAHL Nursing & Allied Health Source.
  • Shaw, K. (2018, January 23). What is disaster recovery? How to ensure business continuity. Retrieved from https://www.example.com
  • Spacey, J. (2016). 33 Risk Management Examples. Simplicable. Retrieved from https://simplicable.com
  • Techopedia. (n.d.). What is IT Risk Management? Retrieved from https://www.techopedia.com

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