A risk assessment for FDI Research Paper Example | Topics and Well Written Essays - 1750 words

A risk assessment for FDI - Research Paper Example The present study would focus on risk management that centers on adopting methodical and steady strategies to administer all of the IT functions threats facing an organization. This paper identifies the problems facing FDI, such as cutbacks spearheaded by the CEO in the IT department in terms of budget and personnel, and which have resulted to a political infighting, whereby the top management of FDI is split on whether there needs to be cutbacks in internal IT functions in favor of outsourcing, or maintaining it as the core of the business. The mitigation strategies identified for FDI problems comprises, hiring an intermediary consulting firm that is independent of the internal politics that are going on concerning the state of IT functions. Moreover, the setting up of an audit committee would help to direct and check the internal functional transaction. Thus, they will be responsible for assessing business and IT functions risks. Furthermore, groups or concern parties will be desig nated as central points in the administering and directing of the organization risk assessment procedures. In addition, the paper elaborates on the important risks issues concerning IT functions when it comes to outsourcing. Finally, the paper presents the risk assessment for the company and validates the claims that IT functions outsourcing is presenting the organization with risk on IT outsourcing. Introduction Risk assessment, is the procedure of scheming quantitatively the probable damage plus monetary outlay, resulting from threats, susceptibility and by incidents impacting the collection of IT assets of an organization (Tipton & Nozaki, 2011). Information technology risk management is the essential process which aids organizations to attain new business transformations, future savings in IT and their IT systems, along with a rising reliance on delivery within the organization information systems. However, the adoption of IT functions and systems has resulted in risks related t o ICT, like strategic risks, operational risks, as well as technological risks (Bahli & Rivard, 2003). Therefore, IT risks management approaches and strategies, need to be developed and implemented within organizations. Accordingly, before implementing any action that would reduce the internal IT functions of an organization, there needs to be a coherent IT risk management entails IT governance, plus information security governance being developed. The aim of this paper is to conduct a risk assessment for FDI, in order to make a compelling case as to what value the IT department brings over that of an integrator that can provide services at 40 percent less annual cost. Discussion Organizational Asset Firstly, the major organizational asset for Fast Distribution, Inc. is information, and the firm has an extensive and expansive data center which helps in keeping pace with issues, such as S&P averages. Therefore, the organization information system helps the organization to collect kno wledge, in order to be utilized effectively. Secondly, the firm brand is a major organizational asset, especially after being recognized by Forbes magazine. Thirdly, innovation pushed forward by the well-honed management is also a critical organizational asset. Then there is human capital, whereby the company has over 3200 experienced and consistent employees. Organizational Risks One of the major risk associated with diminishing internal IT services in favor of outsourcing for FDI, is its exposure to vulnerability in security and strategic capability, especially from the CEO suggestion of an open market. Notably, there is always the possibility that one of the outsourcing company personnel or