Promoting Investment in IT: Addressing Risks and Uncertainty

Identifying and Mitigating Risks Associated with IT Investments

Question

Senior management wants to promote investment in IT, but is uncertain that associated risks are being properly identified.

The BEST way to address this concern is to:

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

D.

The best way to address senior management's concerns about IT investment risks is to appoint an IT representative to the business risk committee (option D).

Option A, ensuring business cases are developed by IT, may not be effective in identifying and addressing potential risks. IT may have a bias towards their own projects and may not consider all possible risks that could impact the organization as a whole.

Option B, engaging an external consultant to develop risk scenarios, may provide some valuable insights, but it can also be expensive and time-consuming. Furthermore, the consultant may not have a complete understanding of the organization's unique risks and challenges.

Option C, assigning an IT cost controller to the finance department, focuses more on managing the cost of IT investments rather than identifying and mitigating associated risks.

On the other hand, appointing an IT representative to the business risk committee provides a direct link between IT and senior management, which ensures that IT risks are appropriately considered and addressed. The IT representative can provide expertise and insights into the potential risks of IT investments and how they may impact the organization as a whole. Additionally, this approach promotes collaboration between IT and other business units, which helps ensure that IT investments align with the organization's goals and objectives.

In summary, option D is the best way to address senior management's concerns about IT investment risks, as it provides a direct link between IT and senior management and promotes collaboration between IT and other business units, which helps ensure that IT investments align with the organization's goals and objectives.