An IT risk management framework is a set of principles, processes, and practices that guide and support the identification, analysis, evaluation, treatment, monitoring, and communication of IT-related risks within an organization12.
The primary advantage of implementing an IT risk management framework is the establishment of a reliable basis for risk-aware decision making, which enables the organization to balance the potential benefits and adverse effects of using IT, and to allocate resources and prioritize actions accordingly12.
A reliable basis for risk-aware decision making consists of the following elements12:
A common language and understanding of IT risk, its sources, impacts, and responses
A consistent and structured approach to IT risk identification, analysis, evaluation, and treatment
A clear and transparent governance structure and accountability for IT risk management
A comprehensive and up-to-date IT risk register and profile that reflects the organization’s risk appetite and tolerance
A regular and effective IT risk monitoring and reporting process that provides relevant and timely information to stakeholders
A continuous and proactive IT risk improvement process that incorporates feedback and lessons learned
The other options are not the primary advantage, but rather possible outcomes or benefits of implementing an IT risk management framework. For example:
Compliance with relevant legal and regulatory requirements is an outcome of implementing an IT risk management framework that ensures the organization meets its obligations and avoids penalties or sanctions12.
Improvement of controls within the organization and minimized losses is a benefit of implementing an IT risk management framework that reduces the likelihood and impact of IT-related incidents and events12.
Alignment of business goals with IT objectives is a benefit of implementing an IT risk management framework that ensures the IT strategy and activities support the organization’s mission and vision12. References =
1: Risk IT Framework, ISACA, 2009
2: IT Risk Management Framework, University of Toronto, 2017
