Why Is Risk Management Important? Essay Example

Risk Management in Information Technology

Risk management is important to health information technology first there are many new devices employed in the service. Comparably too few technicians are available who fully understand the intricacies of the service. No real experts exist as yet in the field. Secondly, it is a developing science and every day diverse events occur which tend to question the technician expertise in the execution of his/her duties (Hubbard, 2009).

The only way an organization could evaluate the extent to which health information is beneficial to their institutions is through risk management. Importantly, risk management identifies irregularities occurring within the system; make a record of the number of times they happen; keep an account of how much it costs the company when there are breaches or delays in retrieving information and anticipates future events (Flyvbjerg, 2003).

Risk Management Components

Information Systems Audit and Control Association, ISACA is the organization responsible for information technology risk management issues. However, its components are closely aligned to enterprise risk management patterns consisting of costs associated with risks calculated using the formula. Next is probable increase in time associated with risk and probable increase in cost associated with risks (Flyvbjerg, 2003).

These three components are equally significant risk management categories. Health care is a business which with managed care implications seeks to minimize costs in an effort to provide higher quality of care for citizens. Information technology was intended to provide this cost reduction. Therefore, it is essential that costs of maintain this service be monitored carefully in any risk management project (Hubbard, 2009).

References

Flyvbjerg, Bent (2003). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University Press

Hubbard, D. (2009). The Failure of Risk Management: Why It’s Broken and How to Fix It. John Wiley & Sons