Risk Analysis Before You Begin This Assignment Be Sure Yo
Risk Analysis before You Begin This Assignment Be Sure Yo
Exercise 1: Risk Analysis Before you begin this assignment, be sure you have read the Case Study and completed the assignment for the Case Study Stage One and Stage Two projects. You should also review the reading “How To Guide to Risk Management.”
Purpose of this Exercise: This activity provides you the opportunity to apply a risk analysis to a specific technology solution. It directly supports the following course outcomes: to evaluate information systems and enterprise solutions to determine the best fit to enable the organization's strategic outcomes; to use information technology tools and techniques to support business intelligence gathering and decision making; and to apply information technology best practices and methodologies to create information technology solutions.
Assignment: Using the Case Study and the IT solution you proposed for Stage One of the Case Study project, complete the risk analysis matrix provided below.
1. Briefly describe your proposed IT solution.
2. Complete the Risk Matrix below: for each Area of Risk,
- explain each area of risk and how that area applies to your proposed IT solution for the Case Study,
- assess the probability (High/Medium/Low) of its occurrence,
- assess the impact (High/Medium/Low) on the organization if it does occur,
- propose a strategy to mitigate the risk.
3. Explanations of each of the Areas of Risk are available in the document “How to Guide to Risk Management,” pages B3-B7. Definitions for probability of occurrence and impact can be found on page 7, and an example of a mitigation strategy is given on page 9 of the same document.
Your paper should be 2-3 pages in length and include a brief description in a paragraph followed by the completed table, which can be copied and pasted into your file. Provide complete answers for “Description” and “Strategy for Mitigation” beyond the space shown in the table. Submit your paper as a Word document with your last name included in the filename.
Risk Matrix
| Area of Risk | Description | Probability of Occurrence (High/Medium/Low) | Impact on Organization (High/Medium/Low) | Strategy for Mitigation |
|---|---|---|---|---|
| 1. Strategic | ||||
| 1. Business | ||||
| 1. Feasibility | ||||
| 1. Capability to Manage Investment | ||||
| 1. Organization and Change Management | ||||
| 1. Dependencies and Interoperability | ||||
| 2. Security | ||||
| 2. Privacy | ||||
| 2. Project Resources | ||||
| 2. Schedule | ||||
| 2. Initial Cost | ||||
| 2. Life Cycle Cost | ||||
| 2. Technical Obsolescence | ||||
| 2. Technology Environment | ||||
| 2. Reliability of Systems | ||||
| 2. Data and Information | ||||
| 2. Overall Risk of Investment Failure |
Paper For Above instruction
The proposed IT solution in this case study involves implementing a cloud-based enterprise resource planning (ERP) system to streamline company operations, enhance data accessibility, and support decision-making processes. The solution aims to integrate various functions such as finance, supply chain management, and human resources into a cohesive platform, thereby improving efficiency and data accuracy across the organization.
Risk analysis is a critical step in the deployment of such a comprehensive IT solution. By evaluating potential risks across various areas—including strategic, security, financial, and technical—the organization can develop mitigation strategies to minimize adverse impacts. This paper completes the risk matrix table based on the proposed solution, drawing from risk management principles outlined in the “How to Guide to Risk Management.”
Beginning with strategic risks, the feasibility of cloud integration and the organization’s capacity to manage change are primary concerns. The probability of strategic misalignment or resistance to change is medium, considering organizational inertia. The impact would be high if strategic goals are not met or significant resistance hampers adoption. Mitigation strategies include thorough stakeholder engagement, comprehensive training, and phased implementation.
In terms of security, the confidentiality, integrity, and availability of organizational data stored in cloud services pose risks. The likelihood is medium, but potential impact is high, especially with sensitive financial or personal data. Mitigation involves adopting robust encryption, access controls, and continuous security monitoring.
Financial risks include initial setup costs, ongoing lifecycle expenses, and risks associated with technical obsolescence. The probability of exceeding planned budgets is medium, with a high impact on organizational resources if incurred. Strategies include detailed cost analysis, contingency budgeting, and selecting scalable solutions aligned with future technological advancements.
Technical risks encompass system reliability, dependency on internet connectivity, and potential incompatibility with existing systems. The probability of technical failure or obsolescence is medium, with high impact on operational continuity. Mitigation consists of rigorous testing, selecting reliable vendors, and planning for system redundancies.
Furthermore, data and information security are paramount, with risks related to data breaches, loss, or corruption. The probability is medium, with high consequences affecting organizational reputation and compliance. Strategies include data backup protocols, strong cybersecurity measures, and regular audits.
Finally, the overall risk of investment failure combines these individual risks and evaluates the cumulative threat to project success. Continuous risk assessment and project management oversight are essential to adapt strategies dynamically.
References
- ISO. (2018). ISO 31000:2018 Risk Management Guidelines. International Organization for Standardization.
- Harold, R., & Stephen, P. (2020). Information Technology Project Management. John Wiley & Sons.
- Schwalbe, K. (2015). Information Technology Project Management. Cengage Learning.
- Stoneburner, G., Goguen, A., & Feringa, A. (2002). Risk Management Guide for Information Technology Systems. NIST Special Publication 800-30.
- ISO/IEC 27001. (2013). Information technology — Security techniques — Information security management systems — Requirements. International Organization for Standardization.
- Martin, R. (2013). Strategic Risk Management. Harvard Business Review Press.
- Laudon, K., & Laudon, J. (2019). Management Information Systems: Managing the Digital Firm. Pearson.
- Hevner, A., March, S. T., Park, J., & Ram, S. (2004). Design Science in Information Systems Research. MIS Quarterly, 28(1), 75–105.
- Peltier, T. R. (2016). Information Security Policies, Procedures, and Standards: guidelines for effective information security management. Auerbach Publications.
- Knake, R. (2017). Cybersecurity Risk Management: Mastering the Fundamentals Using the NIST Cybersecurity Framework. CRC Press.