INFS2001 Wk 11 Control and risk 11Sep08

INFS2001 Wk 11 Control and risk 11Sep08 - Control The...

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INFS 2001 Business Information Systems Week 11 /Slide 1 Control The policies, procedures, practices and organisational structures, designed to provide reasonable assurance that business objectives will be achieved and that undesired events will be prevented or detected and corrected. COBIT - C ontrol OB jectitves for I nformation and related T echnology
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INFS 2001 Business Information Systems Week 11 /Slide 2 Complexity & Growth contact Management’s major control concern Need a Control Framework quality up • time-to-market down • service levels increased • costs contained re-engineered processes • right-sized operations • distributed processing • flattened organisations • empowerment • outsourcing Management’s Expectation for IT Management’s Responsibility for IT • safeguard assets • information has become a most valuable asset • leverage IT
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INFS 2001 Business Information Systems Week 11 /Slide 3 Effectiveness and efficiency of operations Profitable operations Protecting resources from theft etc Reliability of financial reporting Compliance with applicable laws and regulations Legislative requirements eg discharge of pollutants, conforming to minimum pay rates (monitored internally) Control objectives Primarily concerned with the first here
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INFS 2001 Business Information Systems Week 11 /Slide 4 General Control Model Recommend changes to system Evaluate system Document actual state of system Desired state of system Observe actual state of system Observations Documentation Recommendations Evaluation Goals & plans
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INFS 2001 Business Information Systems Week 11 /Slide 5 Focus – where is the risk A dictionary definition of risk is “the possibility of loss or injury” Project risk involves understanding potential problems that might occur on the project and how they might impede project success Risk utility or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff Utility rises at a decreasing rate for a person who is risk-averse Those who are risk-seeking have a higher tolerance for risk and their satisfaction increases when more payoff is at stake The risk neutral approach achieves a balance between risk and payoff Source: Schwalbe, K. (2002) IT Project Management, Thomson
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INFS 2001 Business Information Systems Week 11 /Slide 6 Risk analysis and assessment For risks perceived to be significant What can happen What is the impact Significance (varies depending upon What is the likelihood focus eg project or organisation) Various methods for assessing the significance of a risk Probability * impact Sensitivity analysis (Change values of variables eg cost ±10% and assess impact Risk exposure Potential impact Catastrophic Significant Minimal Probability of occurrence High High High Medium Medium High Medium Low Low Medium Low Low
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INFS 2001 Business Information Systems Week 11 /Slide
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This note was uploaded on 04/20/2010 for the course INFS 2001 taught by Professor ? during the One '08 term at University of Sydney.

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INFS2001 Wk 11 Control and risk 11Sep08 - Control The...

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