Change in Business Direction: Managing Increased IT Risk | CIO's First Course of Action

The CIO's First Course of Action: Addressing Increased IT Risk

Question

An enterprise is planning a change in business direction.

As a result, IT risk will significantly increase.

Which of the following should be the CIO's FIRST course of action?

Answers

Explanations

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A. B. C. D.

D.

In this scenario, the enterprise is planning a change in business direction that will significantly increase IT risk. The CIO's first course of action should be to report the risk to executive management.

Option A, "Plan for the corresponding IT reorganization," may be a valid course of action, but it is premature at this stage. Before making any significant changes to IT, the CIO needs to communicate the risk to executive management and work with them to develop a plan for mitigating that risk.

Option B, "Recommend delaying the business change," is not a recommended course of action. The business change has already been decided, and delaying it could have negative consequences. Instead, the CIO should focus on identifying and mitigating the IT risks associated with the change.

Option D, "Implement IT changes to align with the plan," is also not the best course of action. It is important to assess and mitigate the risks associated with the business change before implementing any IT changes.

Therefore, the best course of action is C, "Report the risk to executive management." The CIO should work with executive management to develop a plan to mitigate the risks associated with the change in business direction. This plan may include IT reorganization, changes to processes or procedures, or other measures to reduce the risk.