IT risk management is the application of the risk management methodology of information technology so that the IT risks could be managed. It can be taken as a component of greater enterprise risk management system.
The maintenance, establishment and scheduled update of an ISMS that gives a strong indication that an organization is using a systematic method for the assessment, identification, and management of the risks related to information security. Many different approaches have been proposed for the management of IT risks, and every of them is categories into steps and processes.
According to Risk IT, the negative impact of operations and service delivery are encompassed that can lead to the reduction or destruction of the value of the organization. It also benefits the amount enabling risk that is related to the opportunities that are missed to use technology to enhance or facilitate business or the IT project management for aspects such as late delivery or overspending with adverse business effects.
Due to the risk being tied to uncertainty a theory called decision theory that should be implemented to manage risk scientifically which means to make choices rationally under certainty. In general, jeopardy is the protection of impact times likelihood. The measure of an IT risk can be calculated as the product of vulnerability, asset, and threats.
A more recent risk management framework for IT risk is the TIK framework. The risk management methodology process constitute a generic framework. They might be broken down into more straightforward subprocess and may be combined, or another sequence of the procedure might change. But these process must be carried out by all risk management in one form or another.
Effective risk management should be wholly integrated into the Systems Development Life Cycles. The IT risk analysis carried on computer installations, applications, systems under development and networks must be considered using structured methodologies. This risk evaluation method takes the output of the risk analysis process as the input. It checks each risk level against the risk acceptance criteria and ranks the risk list with the risk treatment indications.