Effective risk management in IT governance requires that risk evaluation is embedded in the management processes of the organization. This means that risk evaluation is not a separate or isolated activity, but rather an integral part of the planning, execution, monitoring, and reporting of IT activities and initiatives. Embedding risk evaluation in the management processes can help:
Identify and assess the potential threats and opportunities that may affect the achievement of IT and business objectives
Align the IT risk appetite and tolerance with the enterprise risk appetite and tolerance
Prioritize and allocate the resources and actions to address the risks based on their impact and likelihood
Monitor and report the risk performance and outcomes in relation to the IT value drivers and benefits
Embed the risk culture and awareness across the organization
[References:, According to the CGEIT Review Manual 2022, "Risk evaluation should be embedded in management processes. Risk evaluation should be performed as part of planning, executing, monitoring and reporting activities."1, According to the ISACA article on Risk Management: A Driver for Value Creation2, “Risk management should be embedded into all business processes. It should be part of strategic planning, project management, change management, performance management, etc.”, According to the NIST article on Staging Cybersecurity Risks for Enterprise Risk Management and Governance3, “Embedding cybersecurity risk management into enterprise risk management (ERM) processes can help organizations better understand their cybersecurity risks, prioritize them based on their potential impact on business objectives, and allocate resources accordingly.”, , , , , , , ]
