![]() ![]() With that in mind, let’s take a look at how to create a probability and impact matrix that can identify exactly where best to manage risk.Ī risk matrix helps you do both, calculating risk across various outcomes to give you clear guidelines on whether risk is acceptable or unacceptable. Once that decision is made, then the next step is arguably to integrate a risk matrix. ![]() One, you need a way to quantify risk to make the best choice, and two, you need to be able to explain that choice. The math is simple.Two things are true when it comes to making important decisions that impact your company. But with the right plan, specialized expertise, 24/7 automation, and a commitment to long term success, you can minimize it. You can’t eliminate technology risk altogether. With high velocity test automation it’s possible to lower risk and the likelihood of unexpected events, even as you deploy more advanced technology and cut costs. Managing enterprise systems doesn’t mean you have to accept unnecessary risk to your end-to-end processes. Guaranteeing end-to-end business process quality isn’t easy and it takes a long-term commitment. With automation, you’ll see benefits in months, but full deployment can take two to three years for a complex global enterprise. If a defect is found overnight or a function is not working as it should, your team can fix it immediately – before a flight or a cup of coffee is impacted. That could mean validating 500,000 process steps daily! As highlighted in a new IDC report, top firms are already applying high speed business process testing for SAP, web applications, mobile and much more, so it’s no longer a new approach.įix it fast. High speed functional test automation makes it possible to check every process and app on a daily, weekly, or monthly basis. There’s really only one way to be sure that every application and process is ready for business in the morning. Fortunately, much of this is within the CIO’s direct control.Ĭheck everything, all night every night. To lower risk, the best and only lever is to reduce the likelihood of unexpected events, software glitches, and project failures. The only lever for the CIO is to lower “Likelihood.” The Risk Equation makes it very clear. Impact will grow and there’s nothing you can do about it. That’s because they offer such enormous potential for businesses. Mobile, cloud, big data, and new digital platforms are here to stay and the pace of change and innovation is only likely to accelerate. The Impact term in the equation will continue to grow in the foreseeable future. And as we’ve learned from Delta to Starbucks, when technology glitches occur, business comes to a grinding halt. Today the Office of the CIO is vital to nearly every process. Digital technology has never played a more important role in business execution, and nearly every business process is dependent on one or more enterprise systems. Said another way, technology benefits and deployments have been rising, but so have dependency and risk. When the right hand side increases, the left hand side increases. The second is to lower their impact on the business.īut “Impact” is going up! If you’re a CIO, the problem here is that the impact of technology is increasing, so technology risk is also increasing. The first is to reduce the likelihood of unexpected events. But it does provide several useful insights and pinpoints two basic ways to mitigate risk. Is the Risk Equation an oversimplification? Sure. If you put a dollar value on the impact, then you can value the risk and in a simple way compare one risk factor to another. This means that the total amount of risk exposure is the probability of an unfortunate event occurring, multiplied by the potential impact or damage incurred by the event. If you’ve seen an airline in the news recently, it’s probably been another story of a company brought to its knees by technology risk.įor businesses, technology risk is governed by one equation: Risk = Likelihood x Impact. Have you thought about the fundamental equation of risk?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |