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Report on IT Risk Management- Aztek Company

   

Added on  2020-04-01

21 Pages5513 Words36 Views
Running head: IT RISK MANAGEMENTIT Risk ManagementName of the StudentName of the UniversityAuthor’s note

1IT RISK MANAGEMENTExecutive SummaryThe report is primarily based on Aztek and the IT services they are adapting to facilitate theircore business activities and to outsource their services to third-party company. The facilitiesthat the IT services can offer are huge, although there are certain risks, threats andvulnerabilities associated with it. The report has broadly discussed the threats and thevulnerabilities and also along with that the security measures and the control measures havebeen elaborated in details. A security framework model must be initiated as this model canimprove the security of their system and the database and will help to run their business. TheIT services can certainly embellish their company growth and so the management team ofAztek must act responsibly and must focus on to secure the system and the database.

2IT RISK MANAGEMENTTable of ContentsIntroduction....................................................................................................................3Review in regards to the financial services....................................................................3Government regulations.................................................................................................6Best practices.................................................................................................................6Review of project along with the current security measures.........................................7Analysing threats, vulnerabilities and the final outcome...............................................7Security measures to check the threats associated with Aztek....................................13Conclusion....................................................................................................................15References....................................................................................................................17

3IT RISK MANAGEMENTIntroductionAztek has decided to shift to the cloud and they are hoping to shift to the IT can be ablessing for them, the IT services can offer the facilities that can help them to enrich theirbusiness activities, the IT services can help them to outsource their services to third-partycompany and can be largely benefitted, however, they should be mindful of all the risksassociated with the IT services (Lam, 2014).The report will focus on financial risks, the threats and the vulnerabilities associatedwith the IT services. The report will highlight the security or the control measures that theyshould adopt to conduct their business operations in a better way.Review in regards to the financial servicesThe risks associated with the financial services are-The systematic risksThe systematic risks are the risks over which the organisation has no control. Therisks generally occur due to some external aspects and the effect is felt throughout thecompany and throughout the industry. The risks involve war, political events or any otherrecession, even the interest rates are also considered as well (Wu & Olson, 2015). Theaforesaid risks are classified as a market risk, Interest Rate Risk and the purchasing powerrisk.The Unsystematic risksThe risks are termed as a diversified risk; the risk is carried out within the enterprise.The risk effect is considerably lesser and generally affects an enterprise’s resources. Theenterprise assesses the risk and they themselves solve the issues or the risks within. Theoperational risk, liquidity risk, financial risks are the risks described over here (McNeil, Frey

4IT RISK MANAGEMENT& Embrechts, 2015). The examples of unsystematic risks are liquidity risk, operational riskfactor and the business risk.Relevant riskThe relevant risk consists of the both systematic risk and unsystematic risk. Thesystematic risk is not taken into consideration as relevant risk as the risk cannot be controlled.The unsystematic risk is taken into consideration as the relevant risk as the risk can beassessed and can be controlled (Chance & Brooks, 2015). The financial risks involved aresolvency risk, strategic risk, liquidity risk, counterparty risk, regulatory risk and the legal risk.Strategic riskThe strategic risks occur when any organisation takes any wrong decision and usetheir company resources in wrong way. The faulty business plan can be the reason for thefailure of projects, the company can even face losses due to the business tactical mistake orthe strategy mistake.Market riskThe market risk occurs when the prices of a particular resource augment in the market(Lam, 2014). The price of the market products can increase due to interest rate risk, financialmarket risks and the equity risk.Credit riskThe credit risk occurs when the borrower becomes unsuccessful in repaying the loan,in other scenarios the lenders who lend money is unsuccessful to detect whether the borroweris capable to repay the money back or not.

5IT RISK MANAGEMENTThe legal compliance is necessary to consider in Australia and this assists in taking upthe best strategy which can significantly furnish the business activities. There are externalrisks factors associated with political factors too which can affect the company's performance(Chance & Brooks, 2015). These factors need to be detected and based on that the externalfactors must be assessed in an effective manner. The carrying out of business operationseffectively can diminish the risk occurrence within the company.Internal risks are related to different factors like -The communication procedureFollowing of transparent procedureIn the given scenario, Aztek must adopt the best possible strategy to communicatewith the outsourced company; the strategy must be taken in a way such that the risk incurredcan be diminished. In some scenarios, the enterprise can decide to train the employees of theenterprise to adopt the best strategy such that the company does not face such kind of loss.The strategies have been taken to enhance the quality of the customer experience and thecustomer service. Aztek must be careful if any mishaps occur within the company then thewhole reputation can be under threats and thus the reputation of Aztek will be threatened.Aztek being adopting the IT services must be aware of all the IT threats, vulnerabilities andthe security measures (Bromiley et al., 2015). The security measures can assist Aztek toconduct the business activities in a more secure manner and Aztek can gain profit as a resultof this. Government regulationsThe federal body of Australia has imposed certain rules and every individualincluding the enterprises must follow the rules imposed. The strict rules and regulations can

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