Methodology used in risk management information systems

With proper methodology in risk management information systems the benefits to the organization is innumerable. Following a proper methodology would help you to implement risk management information systems easily and effectively. A good risk information management system should help the management to identify the risks at the earlier stage and mitigate them at the earliest.

The process of the risk management should also be monitored properly from time to time to know how the mitigation process is going on so that it does not occur in the near future again. The time spent on risk mitigation would be minimal with the proper risk management information system.

 

The risk management methodology can be split in to five different phases. They are Risk Planning, Risk Identification, Risk Analysis, Risk Response, and Risk Monitoring. These five phases have different processes that are to be carried to complete the risk methodology in a successful manner.

 

Risk planning includes system characterization and find out the necessary tools to be used in risk management. Studying the system character is important in identifying the tools to be used. This also helps you to follow the standards and the compliance of the system that is used to the standards in place. The next step in the methodology is Risk Identification. The risks are identified at this stage and the impact of those risks to the business process is assessed.

Tools for assessing the risks involved can be custom developed or bought from the vendors. Usually it is custom built according to the needs of your organization. The risks thus identified are categorized based on the impact it has on the business and then accordingly they are prioritized for action and follow up.

 

Categorization and prioritization comes in the Risk Analysis phase. In the next stage the risks are managed and remedied. In the final stage the risks are monitored so that they are under control all the time and the remedial actions are taking place in accordance with the standards.