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IT Risk Evaluation and Mitigation Strategy

Learn the best practices of risk evaluation and mitigation strategy in information technology (IT).

IT Challenges

Information technology (IT) is no longer a separate department inside an organization. It influences everything inside the business setting. A risk, error, or threat in IT can greatly impact every department of a business. Making this avenue a highly integral department for overall business success.

Technology is constantly changing, and so does the field of IT. As a result, IT presents unique challenges along with its fluctuating demands. Along with these constant changes come the risks of technological advancements. How can you fare better and grow along with the changes?

Risk evaluation and mitigation strategy are the keys to lessening the potential impacts of risks. But of course, to do so, the right people should be in. For example, an IT manager should oversee the job. Which also presents another problem. The IT field is lacking in talents today. Thus, making IT a challenging yet very important facet in a business.

Conducting IT Risk Management

Here’s a piece of good news, you can effectively manage the risks in the IT space. Here are five steps on how you conduct IT risk management. 

1. Identify Risks

Identify risks wherever they can possibly arise. Everybody must be in the job, managers, and everyone in the IT team. When identifying one, detail how such risk can impact a project.

2. Analyze Risks

Analyze if the risk you have identified imposes minimal, small, or big threats or impacts. In addition, you should also include in detail how each risk will impact you. By doing so, you will better see risk levels and the appropriate measures to take to mitigate them.

3. Evaluate and Rank Risks

Now, it is time to evaluate and rank the risks. This includes understanding what risk can overall do. Do so by ranking the likelihood of the risk from happening and the level of its impact, for instance. This way, you will know whether the risk needs immediate attention or no response at all, when tolerable.

4. Respond to Risks

In this stage, you respond to the risks you have identified. First on the list should be the high-priority risks that require immediate attention. As for the low-risks, you can put them in the last list of priorities. So you can better use your time and not miss a list.

5. Monitor and Review Risks

Continue to monitor and review the risks. See whether you are still on track and adjust when necessary. 

Risk Management Strategies

So here are three examples of risk management strategies.

1. Avoid the Risk

The avoidance strategy aims to avoid the risk at all costs. Once you avoid the risk, you lose the threat. However, avoiding a certain risk can also mean avoiding a potential along with that risk.

2. Transfer the Risk

Transferring the risk can help the company avoid the risk but still gain the potential. Perhaps this can be done by transferring the risk to an outsource entity or insurance company.

3. Reduce the Impact

Reducing the risk impact involves methodology by the teams and leaders. Thus, it comes with a thorough process and a plan.