IT Risk Management Report: Aztek Financial Company Analysis

This report provides an in-depth analysis of IT risk management within the context of Aztek Financial, an Australian financial services company. It examines the challenges faced by Aztek, particularly in implementing new technologies and mitigating cyber threats. The report explores the financial services sector's landscape, highlighting the increasing IT risks associated with data security and cyberattacks. It details the IT risk assessment process, including qualitative and quantitative analysis, and introduces the IT risk framework. The report emphasizes the importance of cloud computing and its impact on data security. It concludes with recommendations for mitigating risks, such as using firewalls and malware protection. The report highlights the need for robust IT governance and risk management strategies to ensure the company's stability and growth in the face of evolving threats. The report emphasizes the importance of IT risk management as a business enabler, focusing on both protecting against value destruction and enabling value generation. The report highlights the importance of identifying and managing potentially critical IT risk issues. It suggests that IT risk management is a business enabler, not an inhibitor.

Running head: IT RISK MANAGEMENT
IT Risk Management
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This report focuses on the IT Risk management on the business organization in the market. The
Aztek Financial Company is implementing projects in the management that helps in maintaining
the security of the data and information. The current state of the financial service sector has been
depicted in the report. The challenges in the company has been shown in the report. The IT risk
framework has been described properly. The IT risk principles has been provided in the report.
The recommendations has been provided in the report for mitigating the issues in the company.
The use of the firewalls and malwares has been depicted in the report.

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Table of Contents
Introduction......................................................................................................................................3
Financial Services Sector Overview................................................................................................3
Impact on current project.................................................................................................................6
Risk assessment...............................................................................................................................8
Risk IT Principles..........................................................................................................................11
Qualitative Risk analysis...........................................................................................................16
Quantitative Risk Analysis........................................................................................................16
Recommendations..........................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................20

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Introduction
The IT solutions have been prominent in the business organization in recent world. The
IT have able to provide solutions for many hurdles in the business organization. There are
various risk involved in use of IT solutions.
This report deals with case study of Aztek operating in Australian Financial Services
sector. The IT risk assessment project has been described in the report. The challenges faced by
the company in installing new applications and technologies has been described properly.
This report outlines overall risk assessment criteria in the IT sector. The risk assessment
based n risks and threats has been focused in the report. There are several recommendations
provided for mitigating threats and risks involved in the company.
Financial Services Sector Overview
The financial services sector has been growing at a constant rate in last two decades. The
Australian market has seen 3.5% increase in the sector (Rampini & Viswanathan, 2016).
Australian financial related administrations change has been eager in its endeavors to accomplish
an effective market through administrative nonpartisanship for various items. The risk involved
in the financial sector are occupying various leverages in the market. This have created various
issues for the company in the market. The use of the illegal opportunities in the market have
created challenges for the company in the market. The Aztek Company has established its center
in the Australia that have caused many opportunities of the company in the market. The number
of customers for the company has been increasing day-by-day. On the other hand, it is also
facing various issues regarding the business. The implementation of the online business have

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created more problems in the company (Meyer & Reniers, 2016). The cyber-attacks have been
increasing on a daily basis. There is a huge data loss in the company. The financial sector of the
Numerous IT risk issues can happen as a result of outsider issues both IT outsiders,
business accomplices. For example, production network IT chance caused at a noteworthy
provider can have an extensive business affect. In this manner, great IT risk administration
requires critical conditions are known and surely knew. IT risk dependably exists, regardless of
whether it is distinguished or perceived by a company (McNeil, Frey & Embrechts, 2015). In this
specific circumstance, it is imperative to distinguish and oversee possibly critical IT chance
issues, instead of each risk issue, may not be cost effective.
The IT risk assessment framework have helped in integrating the management into IT
risk that helps in mitigating the risks in the company by the top level authorities. The decisions
making process of the company has been enhanced by the implementation of the ERN scheme in
the company. The management of the company have able to respond in the risk situation
(Glendon, Clarke & McKenna, 2016). The IT risk framework fills the gaps and loopholes
between the generic frameworks used in the company for mitigating the IT risks and threats in
the company.
The inefficiency to manage for execution or market risk is a solitary normal for monetary
administrations markets. This recognizes budgetary administrations items from the market for
merchandise and numerous different administrations where execution of the item is profoundly
regulated. To some degree this identifies with the idea of monetary items. Long haul bundled
speculation items have been depicted as murky, lacking straightforwardness and unequipped for
being comprehended or assessed by purchasers while counsel about them has been portrayed as
being difficult to evaluate (Chance & Brooks, 2015). It additionally identifies with the goals of

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market productivity. The Wallis Report drew a qualification between the risk allotment works
served by the then extensive arrangements of the Trade Practices Act 1974 (DeAngelo & Stulz,
2015).
The use of Cloud Computing in company has enhanced framework in mitigating the risks
and threats in company. The cloud computing has helped in maintaining security of data and
information of company in market. The cloud computing have enabled the online security of the
data and information. Every execution of IT chance contains a reliance investigation of how the
business procedure relies upon IT-related assets, for example, individuals, applications and
foundation (Hopkin, 2017). IT risk management is a business empowering agent, not an
inhibitor. IT-related business chance is seen from the two points: insurance against esteem
annihilation and empowering of significant worth age. It has received to some degree ordinary
intends to accomplish this in its prerequisites for broad divulgence concerning the supplier, the
item, the nature of the guidance and matters, for example, expenses and potential irreconcilable
situations; direct norms to accomplish reasonable conduct; and authorizing commitments for
budgetary specialist organizations that incorporate arrangement for question determination and
courses of action for remuneration if required. The administrative structure has been fairly
inventive in isolating prudential from advertise control.
Since the way of life of a social framework is about people considering each other
commonly responsible, there is a connection amongst power and risk, as various sentiments
about risk are reflected in challenges over power (Olson & Wu, 2015). Since the investigation of
risk includes both the likelihood of an occasion happening and the plausible significance of the
result of that occasion, a definitive appraisal of the risk will rely upon the esteem agreed to a

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plausible result. Since chance is unsuitable threat, what is adequate risk is a political inquiry. The
assessment of a likely result in figuring danger can be moral.
Australian investors are said to have an appetite for huge returns and are prepared to
build their levels of risk to fulfill it. The Financial Sector Advisory Council revealed that
superannuation has brought into stark help that the premiums of most by far of the populace are
lined up with advertise outcomes (Cohen, Krishnamoorthy & Wright, 2017). Yet there is a
disjunction between the announced ability to grasp the market and a comprehension of the
market and its dangers. The need to enhance the budgetary proficiency of Australians is broadly
recognized. The topic of instruction for the fiscally not as much as educated, now presented to
advertise chance when already less uncovered, goes through numerous contemporary national
ways to deal with regulation.
Australia has not been distant from everyone else in the more prominent presentation of
purchasers to the threats of market chance. In the UK from the late 1980s to the mid-1990s,
people were urged to move out of word related benefits into individual annuity conspires that
gave them less qualifications (Sweeting, 2017). This annuities misspelling embarrassment has
been translated as more than ridiculous offering, over-rich firms, political philosophy, item
many-sided quality or administrative numbness. It has been viewed as a significant
disappointment of the UK administrative structure at the time.
Impact on current project
The current project on which the Aztek Company is working is introducing new
appliances and technologies to implement the IT solutions in the company. The use of the Cloud
Computing helps in providing security of data and information of employees and customers in

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market. The use of cloud computing have maintain a proper database of employees and
customers in market (Yen, 2017). It has also helped in enhancing the relationship with the
customers in the market. The brand image of the company has increased in the market with the
use of the cloud computing. The cyber-attacks on the project has been prominent in the arena.
The use of the internet facility during the project have caused data transmission over the internet.
The viruses and malwares over the internet have attacked the data packets over the internet
during transmission. Therefore, data loss has been prominent in the scenario. This has caused a
huge loss to the company in the market. The issues in the project has been magnified in order to
focus in the solutions of the challenges.

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Figure 1: Categories of Technology risk
(Source: Olson & Wu, 2017, pp. 129)
In Australian financial related administrations control there is little discourse of risk to
singular shoppers. This is astonishing given the express consumer insurance commitments of the
Australian Securities and Investments Commission (ASIC), one of the monetary administration
regulators. One of ASIC's reasonable destinations is to advance certain and educated support by
customers in the budgetary system (Olson & Wu, 2017). It is obliged by law to screen and

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advance market honesty and purchaser assurance in connection to the money related framework
and the installments system. ASIC's buyer security work takes after from particular commitments
in the Corporations Act and general forbiddances in the ASIC Act.
There is a discourse of risk, yet this structures some portion of the discussion about tenets
inside the installments framework and prudential control and is about the soundness and
wellbeing of the framework general. This is a discussion about fundamental risk and risk to an
undertaking operational risk, legitimate risk and prudential risk.
Risk assessment
The risks and threats involved in the company and the finance sector has been prolonged
in the market. The loss of the data and information about the customer and employees has been a
common factor prevailing in the sector. The data loss in company have caused huge loss to
financial condition of company in market. The use of wrong software in network of company
have caused cyber-attacks in company (Hopkin, 2017). The risk assessment have helped in
focusing in the risks and threats involved in the financial sector in company. The risk assessment
process has helped in identifying major risks involved in company and sector and preparing IT
framework to analyze these risks and threats. The main objective of the IT risk assessment
procedure is to minimize the risk and threats prevailing in the company. The consequences of the
risks and threats are managed by the IT risk assessment. The control measures in the procedure
are managed by the assessment process respectively. The maintenance of the safeguard measures
are measured for maintaining the security of data and information.
The Risk IT framework provides a framework for controlling and governing the business
driven IT based services in the company (Haywood et al., 2017). The IT risk framework has

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helped in implementing the IT governance and adopt specific proposals for the benefit of the
company in the market. The IT risk framework helps in maintaining both internal and external
consequences of the company in the market.
These procedures need to manage occasions interior or outside to the enterprise. Inside
occasions can incorporate operational IT occurrences, enterprise disappointments, full
methodology switches and mergers. Outside occasions can incorporate changes in economic
situations, new contenders, and new innovation getting to be noticeably accessible and new
directions influencing IT. These occasions all represent a risk as well as happenstance and need
to be evaluated and reactions created (Bruhn et al., 2017). The risk measurement, and to oversee
it, is the principle subject of Risk IT framework. At the point when opportunities for IT-
empowered business change are distinguished, Val IT system best depicts to advance and
augment arrival on speculation.

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Figure 2: IT Risk Framework
(Source: Hsiao, 2017, pp. 883)
IT chance is business chance particularly, the business risk related with the utilization,
possession, operation, inclusion, impact and selection of IT inside organization. It comprises of
IT-related occasions that could possibly affect business. It can happen with both questionable
recurrence and magnitude, and it makes challenges in meeting vital objectives and destinations.
The IT framework have helps in enhancing business of company in market. The risk of company
has been minimized by the framework (Hsiao, 2017). The investment in the portfolio of the
company has been maintained in the market. However, it is important to identify the risks
involved in the business. The IT risk framework aimed at maintaining a risk management