1. Creating Sustainable Advantage Through IT Risk Management
A Summary with added material of a lecture given by Jan Hertzberg and Ron Markham on 22 Oct. 2008

2. Sustainable Advantage
Sustainable Advantage is one of the most important attributes to a business
Two perspectives of IT risk management
IT’s role in managing organizational risk
Managing risk in an IT function

3. IT’s role in managing organizational risk
There are many different IT needs based on the maturity of the entity and the role of IT
IT presents many opportunities to expand and better the business
With these opportunities come many risks as well

4. IT’s role in managing organizational risk (cont.)
Many executives feel that technology is important when it comes to identifying risk
There are two important types of risk related to IT
External risks – economic, natural, political
Internal Risks – infrastructure, personnel, and process

5. IT’s role in managing organizational risk (cont.)
Important analysis must be done concerning risks
Employees must think about the probability and impact of the risks on the business
It is important to focus on the risks that are most likely to happen especially if their impact on the business is very significant

6. Managing Risk in an IT Function
There are many new risks constantly arising within IT due to the constantly evolving technology
IT departments must fulfill all their “duties” before they can be accepted as a business partner
Having an effective ITRM program is important for an IT department to function successfully within a business

7. Managing Risk in an IT Function (Cont.)
Mitigating risks related to the IT department is important and can be dealt with in a successive pattern
After discovering issues within the IT department there are steps that can be taken to mitigate the risks and place the company in a better position

8. Conclusion
Sustainable Advantage is one of the most important assets in any business
There are two perspectives to consider that relate to IT
IT’s role in managing organizational risk
Managing risk in an IT function
Decreasing the risk related to IT can help to ensure continued success of a company’s sustainable advantage