In the past an organization’s computer systems were centrally located in the company’s data center and the duty to keep those systems running smoothly was responsibility of Computer Operations IT personnel. Disaster recovery and contingency planning are the responsibility of the IT department, whose focus is to ensure that business applications within the IT environment are available as required by its useres.

Today’s IT environment is much more complex to manage. Business information is spread out among varying mediums as LANs and departmental systems have replaced the mainframe.

Further, the emphasis on the computer and resident information has given way to an emphasis on ensuring continuity of the processes that keep the business running. Risk management and business continuity planning, therefore, must become critical components of business operations.

In order for managers to make informed decisions about whether to assume, avoid or transfer risk, and implement cost-effective security solutions, it is essential to adopt a methodology that addresses the issues in terms of cost and benefit.

It is important, therefore, to understand the basics of risk managment by comparing the quantitative and qualitative approaches to risk assessment practices.

While there are a number of ways to identify, analyze, and assess risk, there is little real understanding of the process and metrics of analyzing and assessing risk. Certainly everyone understands that “taking a risk” means “taking a chance,” but a risk or chance of what is often not so clear.

Learn more about Digital Reach’s comprehensive risk management solutions.