Importance of IT risk management
Now that we’ve discussed a fair bit about GRC, the domains of cybersecurity, and the NIST CSF, it is important to understand the implications of IT risk management for an organization.
In an enterprise risk management function, there can be a myriad of risks such as strategic risk, environmental risk, market risk, credit risk, operational risk, compliance risk, reputational risk, and more.
All the preceding risks can be impacted by IT risks in three major ways:
- IT value enablement risk: The delivered projects did not create the expected value, leading to a loss of shareholder value and opportunities that could have materialized
- IT program and project delivery risk: Projects are not ready to be delivered as agreed with the internal and external stakeholders, leading to inconsistency with the overall strategy
- IT operations and service delivery risk: Delivered services are not in compliance with the SLAs agreed upon at the inception of the project
All the preceding impacts have cascading effects on other areas of the organization. An overarching governance framework implementation can prevent these risks from materializing.
