Risk

Download Free IT Project Cost, Benefit and Risk Analysis Templates. This Templates help you to identify and calculate the Return of Investment of any IT Project by analyzing the cost and benefit of the project. This templates available in Microsoft Word and Excel format.

I. How to calculate the Return of Investment (ROI) of IT Project

Step 1: Calculate the Total Costs of Project
Items that should be calculated are:
- Costs of New Proposed Project
- Total Capital Costs (Capital_Cost tab)
- Total Non-Recurring Costs (non_recurring tab)
- Total Recurring Costs (recurring_tab)
- Total Intangible Total Recurring Costs (intangible_costs tab)
- Total Costs of Proposed Project

The thirteen layers of e-security described in The World Bank publication covers both the hardware and software pertaining to network infrastructures. These 13 layers comprise a matrix, which manages the externalities associated with open architecture environments.

1. Risk Management—A broad based framework for managing assets and relevant risks to those assets.

2. Policy Management- A program should control Bank policy and procedural guidelines vis-à-vis employee computer usage.

3. Cyber-Intelligence- Experienced threat and technical intelligence analysis regarding threats, vulnerabilities, incidents, and countermeasure should provide timely and customized reporting to prevent a security incident before it occurs.

4. Access Controls/Authentication—Establish the legitimacy of a node or user before allowing access to requested information. The first line of defense is access controls; these can be divided in to passwords, tokens, biometrics, and public key infrastructure (PKI).

5. Firewalls—Create a system or combination of systems that enforces a boundary between two or more networks.

Management of business risk is an essential component of the responsible administration of any enterprise. Almost every business decision requires the executive or manager to balance risk and reward.

The pervasive use of IT can provide significant benefits to an enterprise, but it also involves risk. Due to IT’s importance to the overall business, IT risk should be treated like other key business risks, such as market risk, credit risk and other operational risks, all of which fall under the highest ‘umbrella’ risk category: failure to achieve strategic objectives. While these other risks have long been incorporated into corporate decision-making processes, too many executives tend to relegate IT risk to technical specialists outside the boardroom.

The Risk IT framework explains IT risk and will enable users to:

There are two kind of Risk Analysis method that we can use to measure the risk level of the company. The methods are qualitative and others are quantitative. Here is simple explanation of each approach

Qualitative Risk Analysis
Using qualitative method such as analyzing Threats, Vulnerability and Controls

Quantitative Risk Analysis
Using calculation such as SLE (Single Loss Expectancy), ALE (Annual Loss Expectancy, Exposure Factor which calculated for each risk and assets'

For better understanding you can download IT Risk Analysis Excel template here

1. Aligning risk appetite and strategy.Management considers the entityfs risk appetite in evaluating strategic alternatives, setting related objectives, and developing mechanisms to manage related risks.

2. Enhancing risk response decisions.Enterprise risk management provides the rigor to identify and select among alternative risk responses.risk avoidance, reduction, sharing, and acceptance.

3. Reducing operational surprises and losses.Entities gain enhanced capability to identify potential events and establish responses, reducing surprises and associated costs or losses.