IT Management help on: Risks in IT sector

System risk faced by organisations in IT sectorIt is very clear that system risks comprise the physical threats experienced by the systems hardware like power surged, internet wire break and the computer hardware system breakdown. Damage to the IT hardware shall have a serious consequence on the system (Prasuna, 2001). On the other side, System risks also comprise inefficient use and maintain system software to cease the system from working like resetting of password, mismatch of prices, upload the wrong data file, deleted all invoices, inadequate regular backup and system upgrade failure. It can be said that technology risk has become an important issue in the time of the rapid innovation (Fredrick & Reichfield, 2001). Companies which are not able to deal with the changing technology shall treat themselves at the severe disadvantage.  Depending upon the technology is not the easy decision. The basic decision in the management of the technology risk is to move and view the consequence of the new technology as it prevails (Kiriakos & Vlahos, 2001). Organizations might be needed to take out the assessments of the risk for several reasons. Risk of information technology comprises the network loss, IT resource or automated system which would impact the ability of the organization to accomplish out its function or mission (Peter & Bernstein, 2001). Technical risks are occurred throughout the organization and should be resolved as the whole. It could be stated that for management of IT risks, management of the Company requires to be comprised in the overall strategy of the organization for managing of risks.  It has been examined that technological risks comprise three kinds of risks such as physical damage risk, system and data integrity risk and fraud risks (Prasuna, 2001).Physical Damage Risk: It has been examined that fire is considered as most dangerous risk which might damage the computer system because everybody knows the data destruction is more expensive in comparison to the hardware destruction (Prasuna, 2001).Water is referred as another risk, when it is associated to the technological matters. Lightening and electrical storms may perform havoc with the power supplies and generating power failures mixed with the power surges as services are restored.

Data & System Integrity Risk: These risks might be specifically important because of nature of the computer operations. Generally risks comprise human error like entering of incorrect transactions, unable to rectify errors, executing wrong files and unable to pursue the stated measures of the security. In this path, potential technical errors comprise malfunctioning hardware or software and supporting of the equipment like communication equipment, emergency and normal power supplies and units of air conditioning. Fraud Risks: Computer fraud normally comprises the theft of founds by misusing the computers system (Guido & Krickx, 2000). Fraud of the input is occurred where input of the data is falsified and good examples are recording the information of the non-existent employees on salary file and non-existent suppliers on purchase file (Guido & Krickx, 2000). On the other side, output fraud comprises documents which are being tampered with and control totals being stolen or altered. Check is considered as the general document to be stolen, but other kind of documents might be stolen to conceal the other types of frauds.

Impact of the System Risk faced by the Organization

• Damage to the IT hardware shall have a serious consequence on the system.
• IT risks comprise the network loss, IT resource or automated system which could affect the capability of the organization to execute out its functions or mission.
• Hacking of passwords – Due to hacking of passwords, the Company may lose the confidential and private data.
• Inadequate Back up – Due to inadequate back up, the Company may lose the important data.
• Internet wire break may hinder the important work and task allocated to the employees.
• Recording of wrong data may produce a significant loss to the Company.
• Deletion of invoices may hinder the payment to suppliers.
• Inefficient use of software may stop the computer from working.Recommendation to the management on Issue

Strategies which adopted to minimize systems risk, categorize into four sequential, distinct activities namely (1) deterrence (2) detection (3) recovery (4) prevention. It has been viewed that general deterrence theory is applied successfully to the environment of IS by the researchers (Clayton & Overdorf, 2000).  The fundamental argument is that actions of information security may deter possible computer abusers from doing acts which explicitly or implicitly violate policies of the organization. It is advisable to the management of the organizations that they should take some security actions in order to lower the risks of the systems. It is necessary for every Company to make out programs on security awareness which forms a part of deterrent countermeasure. On the other side, educating users and their superiors about the security produce major benefits. These kinds of sessions impart knowledge about the risks in organizational environment and emphasize the actions taken out by the companies, comprising sanctions and policies for violations and signify threats to the local system and its vulnerability to attack (Gomet, 2010).  The management of the Company should stress on how to defense the systems with the help of preventives such as locks on doors of computer room and access control on passwords (Peter & Bernstein, 2001). Preventives are considered as active countermeasures with abilities to enforce policies and minimize illegitimate use. At last, it can be concluded that managers should have managerial and technical controls which can deal with risks from computer abuse and disasters.

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