What is IT Risk Management?

IT risk management is the collective steps, services, and technology used by an organization to reduce cyber threats and vulnerabilities. IT risk management is a critical aspect of a larger IT management framework. IT risk management typically includes a variety of actions and considerations including (but not limited to): Identifying, evaluating, and prioritizing points of vulnerability Analyzing and agreeing on risk tolerance Establishing procedures to reduce, negate, or address risk Deploying technology to mitigate risk and support procedures Establishing continuity plans for emergency scenarios and data breaches Organizations of every size should undergo some level of IT risk management to ensure their sensitive data is protected and they have processes in place for unforeseen events of failed security.

IT risk is like a box of chocolates, 'you never know what you're gonna get'. In all seriousness, IT risk is a term to describe the many dangers an organization experiences by purposeful and/or unpurposeful cyber threats. That's what makes IT risk management so integral to an organization-it's difficult to manage risk if you don't know what to look for. IT risk can be something as simple as a former employee still having access to accounts they weren't offboarded from properly, to something as malicious as hackers looking to gain access to an organization's data. IT risk increases as organizations grow and their tech stacks become more complex, which requires IT leaders to consistently audit IT risk management for the sake of their security. Stakeholders involved in IT risk management will work to reduce the amount of IT risk throughout their organization's technical infrastructure and environment. They'll do so with consideration of their 'risk tolerance,' which is the level of IT risk they are willing to enable through use of certain applications, the allowance of certain processes, and the visibility into data usage at their organization.

Why Perform an IT Risk Assessment?

An IT risk assessment is necessary for an organization to understand the current amount of vulnerability they're currently undertaking. IT risk assessments can include: monitoring current security processes understanding the full landscape of applications in use at an organization examining the manner in which information is stored, sent, and utilized. Once a proper understanding of IT risk is understood, IT professionals are able to act on their findings, secure vulnerabilities, and create processes to negate future risk.

What are IT-Related Risks?

IT-related risks, or IT risks, are software and hardware vulnerabilities that could lead to information breaches or workflow mishaps. IT-related risks could include security vulnerabilities, human error, and more. IT-related risks are assumed by all organizations, with their volume altered by the processes put in place by IT, software utilized, and the visibility IT teams have into technology usage at their organization. One key risk not commonly considered when examining IT-related risk is Shadow IT. Shadow IT is the use of unsanctioned applications out of the purview of IT. The use of these applications can lead to consistent security vulnerability, especially en-mass due to the decentralized nature of SaaS applications. Click here to learn more about Shadow IT.

What is IT Governance?

Definitions, IT Management

IT governance is the structure, framework, and strategy to ensure that an organization’s IT infrastructure is safe, efficient, and effective as it works towards its mission.

Often a combination of procedures, rules, and processes, IT governance provides a framework for how an organization utilizes technology to achieve their mission.

Once formulated and introduced to an organization, IT governance establishes how to use software, hardware, and other IT-related assets—now and in the future.

What are examples of IT governance?

While some might simply associate IT governance with the word “no”—as in, “can I download this application?”—IT governance is actually a wide set of strategies that ensure an organization is effective in their technology usage.

IT governance can include procedures and standards set by IT, such as:

What types of applications employees can freely implement independent of IT (if at all)
How to store company documents, data, and assets safely
What constitutes permitted or allowed physical hardware or digital applications
The structure of an organization’s digital architecture
What an organization does to backup company data in the case of failure or loss

What is the role of IT governance?

IT governance establishes a standardized methodology for utilizing technology in an organization. No different than how designers create a brand guide to establish how to use logos, assets, and company assets—IT governance is a similar framework for technology.

By having standardized IT governance, organizations can reduce IT-related risk, establish clear priorities and standards for technology usage, and ensure more seamless collaboration across the digital workplace.

What are the four 4 focus areas of IT governance?

While not always just these four areas, IT governance typically focuses on these four areas for effective management:

Strategic Alignment with Business:
Ensure that frameworks and procedures implemented for technology work to empower, rather than hinder, business operations.
Value Delivery:
Ensure that technology implementation provides ROI and perform continued procedures such as application rationalization to optimize ROI of technology investment.
Risk Management:
Ensure that IT risk is considered, mitigated, and accounted for in the case of failure.
Resource Management:
Ensure company resources are easily accessible for stakeholders, backed up in the case of failure, and maintained in a state of confidential readiness.

How can you create an IT governance structure?

Creating a successful and productive IT governance structure involves four important steps:

Understand the basics and structure of how your organization uses technology
Prioritize business objectives and understand how IT governance can contribute to those objectives
Design and implement processes and systems that help achieve actionable progress towards greater business success
Communicate with relevant stakeholders to gauge the success of relevant processes, breed adoption, and adjust accordingly

One easy win when activating IT governance is getting a handle on SaaS management. For enterprise organizations, SaaS management can quickly enable cost savings, security improvements, and greater efficiency.

>>>Click here to learn about some of the problems SaaS Management can help solve.<<<

Author:

Chris Lamonica

Chris Lamonica is a Marketing Content Writer for Torii. He’s spent the past six years of his life diving deeply into SaaS, machine learning, artificial intelligence, and other complex technologies to craft content about their usage. Outside of Torii, you’ll find him talking too much about fountain pens, shouting loudly along with the Mountain Goats, or watching the New York Rangers. He’s been credited as his cat’s favorite writer.

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