Quantitative Assessments In Risk Management Essay

Question:

Discuss about the Need to Balance the Qualitative and Quantitative assessments in Risk Management.

Answer:

Introduction

IT Risk Management is important for the different aspects as it focus on the contemporary functionality of the organisation. The focus is on how the risk is connected with the wide application of the information technologies with increase of the correlation of the organisation with its customers, business partners and the outsourced operations. It includes the concentration on searching the optimal proportions between the threats and the costs of the IT systems. With this, the best stage for this is risk optimisation with the minimised loss that is connected with the risks. The evolution is based on concentrating over the security of the IT systems.

Critical Analysis

The analysis is based on the production enterprise with specific system assets through the indirect or the direct loss for the organisation. IT risks is considered to be a threat if the business does not fill the activity of the requirements, ensure the integrity or the security properly. The risks are also comprehended for the identified management with the focus towards handling and evaluating the risks analysis. (Schermann, 2016). The aim of the risks analysis is based on the quantitative and the qualitative methods where:

Quantitative methods:

  1. They are considered to be the major consequence of the incidents that have been occurring with the fact it includes the realisation of the costs as well as the benefits.
  2. It also includes the accuracy image of the risks as well where the measures depend on the scope with defined measurement scale. (Fairbrother et al., 2016).
  3. The results of the analysis are under the normal methods which are enriched in the qualitative hand with the analysis that could be conducted for the more expensive, demanding greater experience and the advanced tools. (Aven, 2016).

Qualitative Methods

  1. This works on putting the risks according to the priority which also works on the areas to determine about how the short time risks and less expenditure risks could be handled.
  2. The analysis is also relatively found to be easy where it does not allow the determination of the probabilities. (Behzadi et al., 2017).
  3. The costs and the benefit analysis is found to be difficult in this with the achieved results that have a general character. The qualitative method is not accurate enough for the assessment of the IT risks.

Critical issues in Risk Management

The risks are related to the occupational and the public safety which results mainly from the work schedules which sets under the regulatory agency. It works on the different high profile incidents where the lack of the external or the internal motivators will lead to the major issues of work. Hence, the development of the products like the fatigue training and the countermeasure tools are important for the distribution of the material with addressing all the important responsibilities and concerns. (Hansson et al., 2014). The quantitative methods are for the proper estimation of the risks values which is connected with the applications based on the numerical measures. It also includes the qualitative perspectives which do not operate on the numerical data. The risks analysis is comprehensive identification of the threats and the susceptibility with properly determining the levels for making decisions with the applications set for the specific methods. (Agcaet al., 2017). This also includes the evaluation of resources and working over the information, software, hardware and the physical resources. The assessment of the consequences will then help identifying the threats that will be able to determine the possibility of destruction.

Reflection

According to ISO 31000, there is a need to focus on the internal and the external criteria of the project. This refer to the compliance with safety, environment and the statutory requirements. The evaluation is also mainly acceptable which depends on the organisation tolerance for the risks which contributes to the stemming from the risks. For the balance in between the risks, there is a need that the parties are able to work on different aspects of the project delivery which is important for the identification and informed cross section. (Giannakis et al., 2016).

Conclusion

The IT risks includes the direction of deliberation and the activities where the methods of the risks assessment are set in the advanced form. (Wiengarter et al., 2016). The benefits are multidimensional but there is a need to keep a balance in between the losses and the costs which is for implementing the protection. This will help in planning the expenditures properly and work on the lack of fundamental to any additional investments in Information Security.

References

Agca, R., Heslinga, S.C., Rollefstad, S., Heslinga, M., McInnes, I.B., Peters, M.J.L., Kvien, T.K., Dougados, M., Radner, H., Atzeni, F. and Primdahl, J., 2017. EULAR recommendations for cardiovascular disease risk management in patients with rheumatoid arthritis and other forms of inflammatory joint disorders: 2015/2016 update. Annals of the rheumatic diseases, 76(1), pp.17-28.

Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), pp.1-13.

Behzadi, G., O’Sullivan, M.J., Olsen, T.L. and Zhang, A., 2017. Agribusiness supply chain risk management: A review of quantitative decision models. Omega.

Fairbrother, A., Hartl, B., Hope, B.K., Jenkins, J.J., Li, Y.W. and Moore, D.R., 2016. Risk management decisions for pesticides and threatened and endangered species: The role of uncertainty analysis. Human and Ecological Risk Assessment: An International Journal, 22(2), pp.502-518.

Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, pp.455-470.

Hansson, S.O. and Aven, T., 2014. Is risk analysis scientific?. Risk Analysis, 34(7), pp.1173-1183.

Schuermann, T., 2016. Stress testing in wartime and in peacetime. Browser Download This Paper.

Wiengarten, F., Humphreys, P., Gimenez, C. and McIvor, R., 2016. Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171, pp.361-370.

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