|
Network Needs Assessment:
Lay plans for technology to support new business applications being
rolled out on their networks. Conducting a needs analysis to
determine what networking resources are on hand, how they affect
each other and what might need to be changed or added to support new
goals falls outside the business processes of most organizations
Risk
Management
Risk Management is the process of measuring, or assessing risk and
developing strategies to manage it. Strategies include transferring
the risk to another party, avoiding the risk, reducing the negative
effect of the risk, and accepting some or all of the consequences of
a particular risk. Traditional risk management focuses on risks
stemming from physical or legal causes (e.g. natural disasters or
fires, accidents, death, and lawsuits). Financial risk management,
on the other hand, focuses on risks that can be managed using traded
financial instruments.
In ideal risk management, a prioritization process is followed
whereby the risks with the greatest loss and the greatest
probability of occurring are handled first, and risks with lower
probability of occurrence and lower loss are handled later. In
practice the process can be very difficult, and balancing between
risks with a high probability of occurrence but lower loss vs. a
risk with high loss but lower probability of occurrence can often be
mishandled.
Intangible risk management identifies a new type of risk - a risk
that has a 100% probability of occurring but is ignored by the
organization due to a lack of identification ability. For example,
knowledge risk occurs when deficient knowledge is applied.
Relationship risk occurs when collaboration ineffectiveness occurs.
Process-engagement risk occurs when operational ineffectiveness
occurs. These risks directly reduce the productivity of knowledge
workers, decrease cost effectiveness, profitability, service,
quality, reputation, brand value, and earnings quality. Intangible
risk management allows risk management to create immediate value
from the identification and reduction of risks that reduce
productivity.
Risk management also faces difficulties allocating resources. This
is the idea of opportunity cost. Resources spent on risk management
could have been spent on more profitable activities. Again, ideal
risk management minimizes spending while maximizing the reduction of
the negative effects of risks
|
