ERM Model of Telstra Using Cloud Computing AIS

This article discusses the ERM model of Telstra using cloud computing AIS. It covers the internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. The article also includes a bibliography.

Running head: ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Name of the Student
Name of the University
Author Note

1ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Table of Contents
Cloud Computing.......................................................................................................................2
Internal Environment.................................................................................................................2
Objective Setting........................................................................................................................2
Event Identification....................................................................................................................3
Risk Assessment.........................................................................................................................3
Risk response.............................................................................................................................3
Control Activities.......................................................................................................................4
Information and Communication...............................................................................................4
Monitoring..................................................................................................................................4
Bibliography...............................................................................................................................6

2ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Cloud Computing
Cloud computing refers to the accessing and use of the network that is hosted over
remote servers over the internet with objective of storing, managing and processing of the
data. The computing service in discussion can even be considered as a shared pool of
configurable computing systems along with its resources and other high level services that
are envisioned with reducing the management effort and Telstra the subject of the firm has its
AIS (Accounting Information System) over the cloud to enhance its functionality while
mitigating the threats. The COSCO ERM elements on AIS under the cloud computing
environment have been incorporated to detail the ERM model for Telstra.
Internal Environment
Internal environment of the COSCO ERM is dedicated towards assessing the
management’s philosophy that in case of the Telstra states development of pillars of the
organisation on customer advocacy and driving of values core to the business. Hence, the first
and foremost assessment of risk should be focused on the management styles, ethical aspects,
organising structuring, authority roles and responsibility defining and to the human resource
standard defining. It will provide the prominence of ensuring that the leadership of the firm is
sound and suitable to carry out the necessary actions with accuracy and efficiency.
Objective Setting
The second component that is to be taken into consideration is the is the objective
setting. The prominence of understanding the risk appetite of the discussed component is very
crucial because the strategic perspective is not limited to strategic objective but extends to
operational, reporting and compliance objectives setting that together helps in maintaining the
sustainability of the firm. The assessment of the risk level assists in undermining the
uncertainties and the strategies to cope up with it.

3ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Event Identification
The discussed component focuses on the identification of the incidents that are
capable of affecting the success percentage of the firm’s objective achievement. It primarily
focuses on the questions of what can go wrong, how can the incident go wrong, what are the
potential harms and what can be done to avoid the situation or mitigate it? The assessment on
the risk assists in ensuring that the events does not avoid the team from attaining the
objectives.
Risk Assessment
Risk assessment is one of the crucial needs that needs to be assessed as it will help the
firm to develop strategies to mitigate them. Hence, Telstra needs to focus on the risks that
may occur and also focus on the probability of occurrence and what impact will it cite. In
case of the cloud computing based AIS, the risk such as data leakage, data theft, cyber threats
are prominent. The impact of data leakage will be prominent because it will impact the
strategic planning of the firm and hence needs to be avoided. Hence, in the discussed scenario
the probability and impact both are high so the risk is of high priority and must be avoided.
The inherent and residual of the risk should also be assessed for developing a complete
strategy for risk response.
Risk response
The response to any risk can be given in four different aspects and those are reduction
of the risk, acceptance of the risk, acceptance of the risk, sharing of the risk and avoiding the
risk. In case of Telstra, they can buy insurance of their data, instruments and servers to share
their risk, or they can reduce the risk by adopting certain cloud security modules such as
encryption and others. Then, there is probability of accepting the risk where nothing needs to
be done but it should be avoided as without proper data, the strategic planning of Telstra

4ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
along with other planning will be affected greatly. Avoiding of risk is also a response but it
will lead the firm to lacking in competitive advantage. Hence, reducing and sharing are the
most prominent risk response.
Control Activities
The firm should ensure proper authentication is used by its stakeholders to access the
tools and data of the firm. Furthermore, the accessibility of the stakeholders should be limited
based on their designation. The independent checking of the performance, structuring of the
data are also some of the prominent steps that needs to be considered. Safeguarding the
records, data and assets also needs to be taken into account.
Information and Communication
One of the most prominent risk for a cloud based AIS is regarding its information and
communication and should be given adequate focus in the ERM. Information refers to
processes data that have meaning and are one of the most prominent need for organisational
decision making and hence needs to be considered. Additionally, the AIS is used for different
communicational purposes especially transactional communication through invoices, bank
statements, financial receipts, loans, revenue statement and multiple others. It is one of the
most crucial aspect of Telstra and needs to be given adequate focus and so, it should be
included in the ERM.
Monitoring
It refers to the monitoring of different activities that extends from control evaluation
to tracking of the physical components such as hardware and others. The ERM will focus on
the discussed aspects as it will enable in mitigation of the chances for fraud, stealing and may
other crucial aspects that needs to be focused on for the sustainability perspective.

5ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Considering all the components discussed above will assist Telstra to ensure that the
ERM of the firm is effective and capable of ensuring the success of the AIS on the cloud
computing environment.

6ERM MODEL OF TELSTRA USING CLOUD COMPUTING AIS
Bibliography
Alewine, H. C., Allport, C. D., & Shen, W. C. M. (2016). How measurement framing and
accounting information system evaluation mode influence environmental performance
judgments. International Journal of Accounting Information Systems, 23, 28-44.
Banerjee, B. (2016). Enterprise Risk Management. The Management Accountant Journal,
51(3), 66-72.
Komala, A. R. (2017). Cause and effect of accounting information system: A study in
national Zakat management organization. JABS, 3(2), 69-76.
Li, L. (2018). A Study on Enterprise Risk Management and Business Performance. Journal
of Financial Risk Management, 7(01), 123.
Liu, C. L., Shang, K. C., Lirn, T. C., Lai, K. H., & Lun, Y. V. (2018). Supply chain
resilience, firm performance, and management policies in the liner shipping industry.
Transportation Research Part A: Policy and Practice, 110, 202-219.
Pei, C., & Zheng, W. (2015). The Risk Prevention and Control Subsystem. In China’s
Outbound Foreign Direct Investment Promotion System (pp. 153-176). Springer,
Berlin, Heidelberg.