IT Risk Management Report: Outsourcing and Security Analysis

This report provides a comprehensive analysis of IT risk management strategies for the Aztek organization, focusing on the transformation of their existing business activities platform through outsourcing. The report explores the benefits of outsourcing IT operations, including increased functionality and improved strategic decision-making capabilities. A major concern highlighted is the security of outsourced business activities, leading to the development of a detailed mitigation plan. The report covers various aspects such as change management programs, research methodologies, review of the financial sector, and the impact on the existing security system. Data flow for managing data security and a threat, vulnerabilities, and consensus matrix are also presented. Recommendations are provided to address the identified risks and ensure a secure and efficient outsourcing process. The analysis emphasizes the importance of continuous procurement, communication, and integration of business operations to enhance the overall performance of the Aztek organization. The report also discusses the importance of service level agreements and the significance of ethical conduct in financial management. The conclusion underscores the critical need for robust security measures to protect sensitive data and maintain the integrity of the outsourced operations.

IT RISK MANAGEMENT

Executive summary:
In this paper, we recommended to the Aztek organisation to transform their existing business
activities platform with the program of outsourcing business operations for minimizing the
cost associated with the working environment of the traditional procedure undertaken. The
IT operations can be outsourced for increasing the functionality of the business operations of
Aztek organization. The strategic decision making capability of the project owner can be
improved with the inclusion of outsourcing of business functionalities. The security is the
major concern with the business activities which are outsourced on the other business
platform developed by the third party. The development of the mitigation plan is the result of
using expertise, knowledge and skills in the effective and efficient manner. The activity of
outsourcing works on providing key resources at the time of demand.

Contents
Executive summary:..............................................................................................................................1
Overview:..............................................................................................................................................3
Outsourcing business activities:.............................................................................................................3
Change management program for transforming existing business architecture with the Outsourcing
program:................................................................................................................................................4
Use of Research Methodologies:...........................................................................................................5
Review of financial sector with the deployment of outsourced program:..............................................6
Impact on existing traditional security system with the deployment of outsourcing program:..............7
Data flow for the management of data security of the Aztek organization:...........................................8
Threat, vulnerabilities, and consensus Matrix:......................................................................................9
Discussion:..........................................................................................................................................16
Recommendation:................................................................................................................................17
Conclusion:..........................................................................................................................................18
References:..........................................................................................................................................18

Overview:
In this paper, we are looking forward for designing the new working platform for the Aztek
organization. The Aztek organization is comprised of some risks in the traditional working
environment. They want to upgrade the system to the new functionality to remain ahead in
the global market. It is recommended for the Aztek organization to transform their working
culture with the outsourcing of the activities with the inclusion of the third party to carry out
their business operations. The IT operations can be outsourced for increasing the
functionality of the business operations of Aztek organization. The functionality of the
outsourcing helps in increasing the cooperation and coordination between the business
processes. Different methodologies are used for analysing security issues deployed in the new
method of outsourcing. The outsourcing activities are used for reviewing the financial
statement of the enterprise.
Outsourcing business activities:
The strategic decision making capability of the project owner can be improved with the
inclusion of outsourcing of business functionalities. The knowledge domain is used for
analysing the development cost of the project for determining the baseline of the project. The
processes which are involved in the outsourcing of business activities to the third party are
categorised as management of helpdesk processes, management of the data storage and
associated application. The continuous procurement process can be undertaken for the
deployment of outsourcing program for increasing the benefit of Aztek enterprise. The
formulation of the communication program can helps increasing the processing of the
business operation. The integration of the business operation helps in changing the
capabilities of the Aztek organization. The outsourcing program is recommended for the
following factors:
 The resources and associated business operation are used for reducing the budget
integrated with the business activities.
 The investment of the processes should be evenly distributed.
 The supply and demand can be evenly distributed for managing the business operation
on the outsourced program

The inclusion of outsourcing program helps in completing the project with the use of new
tools and technologies by the third party. The outsourcing model is comprised of the
administration control, maintenance and development program, service provider,
procurement management program, application deployment scheme, and others. The security
is the major concern with the business activities which are outsourced on the other business
platform developed by the third party. The security of the outsourcing program can be
achieved with the deployment of the fixation procurement process, intrusion detection and
prevention system, administrative control on the IT services provided by the service
providers, and firewall management system. The data centre is the key area which required
heavy security program during the outsourcing of activities (Peters, 2015). The outsourcing
activities can be accessed from the remote areas with the development of the global hub to
get relevant information for enhancing the working culture of the enterprise. The list of
processes which are outsourced with the help of outsourcing model are categorised as
business processes, administrative processes, application service process, Design and
operating processes, application and development maintenance processes, infrastructure, and
IT services which can be depicted from the figure below:
Change management program for transforming existing business architecture with the
Outsourcing program:
The outsourcing program helps in minimizing the risks associated with the existing values of
the enterprise. There are many activities in the existing system which has to be transformed

on the outsourced platform of the third party which are categorised as development of the
project activity schedule, open forum for variation in the ideas, training and development
program for the working employees, and others. The most crucial activity which is associated
with the transformation of business architecture to the outsourced program is the signing and
development of the service level agreement with the supplier and contractor for completing
the activities within scheduled time and cost. The service level agreement sets the idea
management operation to bring innovation in the working structure of the existing company.
The continuity of the project can be retrieved with the deployment of the backup schedule
and program for the management of business activities (Thomson, 2012). The deployment of
actions and on-going processes helps in changing the scenario of the current working
program of the Aztek organization because it indulge the communication platform between
the participating units such as executive committee, management committee, and operational
committee. The satisfaction level of the customers can be improved with the management of
progress reports. The escalations received help in management of the financial area, conflicts
and dispute resolution, and compliance management program (Sen, 2009).
Use of Research Methodologies:
The accuracy of the research methodologies helps in achieving the project objectives. The
company is planning for the deployment of the outsourced platform for reducing the risk
associated with the project development plan. The data should be collected in the direction to
verify and validate the advantages associated with the implementation of the outsourced
program in the working structure of the organization. The qualitative and quantitative
approaches are used for gathering data in the direction of outsourcing program.
 Interview: The interview is conducted with the top executives with the organizations
which are working on the outsourced program to know the benefits and flaws of the
new program. It helps in finding out the research questions such as Is the outsourced
program helps in increasing the turnover of the company? The outsourcing progam
plays a vital role in the development of the skills and expertise in the behaviour of the
working employees. It helps in identifying the time and activities which can be
efficiently outsourced to the third party. It helps in collecting data which can develop
the alternative plan for resolving the issues associated with the working structure.
 Sampling: The small population is chosen for testing the efficiency of the outsourced
program by documenting the findings of the testing program undertaken for

completing the outsourced program for the organization. It has been analysed that
around 25% of the turnover can be improved with the deployment of the outsourcing
activities.
 Amalgamation of different sources for the data collection process: The primary data
and secondary data should be collected on the basis of research questions designed for
undertaken the research methodology. It helps in finding out the negative and the
positive escalation associated with the working of outsourced program.
Review of financial sector with the deployment of outsourced program:
From the research and analysis, we have concluded that the outsourcing program increases
the business value of the organization. It plays a vital role in increasing the turnover of the
company. It is the cost effective technique for managing the cost spent on purchasing the
required resources for the organization to complete the business plan on time. The third party
will take over the working program of the Aztek enterprise for improving the financial
condition of it. The turnover of the company helps in generating goodwill of the organization
among the customers. The customers get attracted towards the enterprise for increasing the
profitability ratio of the Aztek organization. The skilled employees play an important role in
the development of the global market. The outsourcing company should work under the
regulatory compliance of the government for increasing the authentication of the activities
performed to resolve the legal associated with the working culture of the enterprise. The
uncertainty can raises the budget allocated to the delivery of each outsourced activity. The
impact of the failure of planning activities can be seen on the over budgeting of the cost The
functionality of the traditional and the existing working can be completely changed with the
deployment of the innovative outsourced program. The outsourcing of the processes and
project activities are equipped with financial statement of the enterprise. The cost of
completing the activities can be efficiently minimized with the involvement of third party in
the working platform of the Aztek business terminology (Patil, 2013). The management of
the ethical code of the conduct helps in improving the financial statement of the enterprise
which are classified as effective management of the banking transaction, customers code for
banking transaction processes, association and deployment of financial plan, and deployment
of financial and insurance services. The service providers are working on accomplishing the
business activities within the time limit so at to complete the project within the offered
budget of the project. The analysis of the sponsorship helps in identifying the financial

condition of the organization (Mirkovic, 2007). The growth and the turnover of the company
can be efficiently improved with the effective management of the working processes. The
activity of outsourcing works on providing key resources at the time of demand. The
reviewing of the financial condition of the firm helps in analysing the work flow and
management of outsource activities which plays a key role in the development of the
complete project. The handling of the activities to the third party helps in the financial growth
of the enterprise.
Impact on existing traditional security system with the deployment of outsourcing
program:
The changes in the functional and operational program of the traditional working
environment help in enhancing the working culture of the Aztek enterprise (Jansen, 2011).
The management of the business processes according to the new and trendy techniques of the
outsourced program helps in creating the new working climate for the improvement of
technical and operational skills of the working employees. The employees can sharpen their
skills and expertise with the training and development program according to the need and
requirement of the outsourced program. The activity of outsourcing indulges the inclusion of
third party in the working environment of the enterprise which can be the gap and
breakthrough for the occurrence of data leakages for the loss of confidential information of
the existing firm (Moore, 2008). The loss of confidential information can result into the
occurrence of obscure in the working environment and flow of activities. The purpose of the
enterprise to outsourced their business processes to the third party is to minimize the cost
associated with the completion of activities, deployment of strategic decision for increasing
the flow of operational perspective view of the working processes, unavailability of the
skilled and expertise team members and other participating unit according to the requirement
of business processes, unavailability of the skilled workers in the outer space of the firm, and
the constraint and pressure of completing the project on time and within allocated cost
(Kelvin, 2013). The security and risks associated with the outsourced business operations is
the major concern of the Aztek enterprise. There is requirement arises of the new security and
risk mitigation system for the outsourcing of the business operation are categorised as
migration platform for outsourcing processes, transmission of activities involves the data
conversion for managing the outsource program, efficiency of the resources available,

maintainability of the control structure of business sequence, involvement of external parties
for the inclusion of service provider, and satisfying customers credentials.
The international standards should be included in the development of the security architecture
of the Aztek enterprise. The focus of the new system involves the development of the new
environment for increasing the efficiency of the existing system. The activities which are
involved in the security architecture of the Aztek enterprise are accuracy, integrity,
confidentiality, management, maintenance, transmission process, and others. The
maintainability of the enterprise depends on the pillars of privacy and confidentiality. The
service level agreement plays an important role for the management of business processes.
Data flow for the management of data security of the Aztek organization:
The distribution of the processes to the multiple sites of the outsourced program is equipped
with various challenges for the continuity of the business process on the outsourced
environment. The third party focuses on the business processes for acknowledging the
capabilities of the company to cope up with the development of the project. The productivity
of the organization can be improved with the outsourcing curriculum of the processes. The
efficiency of the stakeholder depends on the procedure of data security plan. The inclusion of
the pilot process helps in knowing the security procedures which are used for providing
security to the data (Hogmen, 2012). The continuity of the project can be retrieved with the
deployment of the backup schedule and program for the management of business activities.
The cryptographic procedures are used for encryption and decryption of required data at
sender and receiver end. The following flowchart gives the detail of processes which are
involved for managing the flow of data securely between the participating units in the
outsourced network of activities. In this flowchart, we analyse that the outsourcing of
activities depends on analysing the requirement of the Aztek enterprise. The activity of
outsourcing works on providing key resources at the time of demand. The reviewing of the
financial condition of the firm helps in analysing the work flow and management of
outsource activities which plays a key role in the development of the complete project (Cobb,
2013). The pilot processes and interviewing techniques should be used for knowing the
requirement of the client. The service level agreement should be signed for managing the
security of data in the maintenance and deployment of the outsourced program. The
participating units focus on the quality of the activities for managing the security of data to
retain its confidentiality and integrity for achieving accuracy in the final project.

Threat, vulnerabilities, and consensus Matrix:
Risks Description Priority Impact Mitigation
strategies
Inefficiency in
the designing
process of the
outsourced third
party
The efficiency of
the third party
can be measured
with the analysis
of the initiative
taken by the
company to start
the project. The
High The failure of the
project at the
completion of
the final
activities
Inclusion of
automatic
CADD system
for the
development
of the design
for competing
the project

negative
escalation can
result in the flaws
occurred in the
development of
the final output.
Inadequacy and
inaccuracy in the
estimation of the
cost can affect the
working
procedure of the
enterprise
activities
Unavailability of
the skills and
expertise in the
working
employees
The analysis
should be done
for identifying
the expertise
which exist in the
working
employees of the
outsourced
company. The
selection of the
employees to
complete the
tasks is the vital
role in the
handling of the
outsourced
program.
High The delay in the
project can occur
due to the
Unavailability of
the skills and
expertise in the
working
employees
Inclusion of
training and
development
program
Relationship
between the
uncertainty and
the business
Risk associated
with the planning
phase for
synchronizing the
Medium It can raises the
budget allocated
to the delivery of
each outsourced
PMBoK
standards
should be used

activity plan outsourcing
activities. The
cost effective
techniques are not
efficiently used in
the planning of
outsourcing
procedures
activity. The
impact of the
failure of
planning
activities can be
seen on the over
budgeting of the
cost
Inefficiency in
the activity
management plan
The uncertainty is
the major factor
which is
responsible for
the incompletion
of outsourced
activities. The
scheduling of the
business activity
plan can result
into the failure in
delivering the
project on time
Low The chance of
uncertainty to
occur is very low
but it can affect
the baseline of
the completion
of the project.
Reviewing of
the business
activity plan
Use of out-dated
and expertise
The outsourced
company does
not use the
upgraded version
of application for
completing the
business activity
of the Aztek
organization
Low It can affect the
inefficiency and
low quality
output
The upgraded
version of
equipment
should be used
for completing
the business
operation of
the Aztek
enterprise. The
development
of the
mitigation
plan is the