Information systems are incorporated set of elements following a certain set of procedures to collect, accumulate, and circulate data to enhance decision making with regards to management, regulation, organization, monitoring, assessment, and visualization in an organization. Risk management is an important part of information system security. It is essential for any organization to understand the crucial steps that are required to be taken to minimize information systems risk.
Information systems carry out and manage operations for an organization. It helps them to connect with clients and providers and compete in the market, while many significant companies have been developed completely around information systems, including eBay, Amazon, Alibaba, Google, and more. While people also rely on information systems, usually internet-based, for carrying out much of their personal lives: for example, socializing, research study, shopping, entertainment, and banking. A distinctive type of Information system is the Management information system (MIS), which provides information for managing an organization.
EC-Council University offers a course on Managing Risk in Information systems under its Bachelor of Science in Cyber Security degree. The course provides a modern and comprehensive view of information security policies and frameworks.
Types of information systems
These are the various types of information systems;
Transaction Processing Systems
These systems have been designed to follow a certain procedure, collect and store transactions that take place in the everyday operations of a business.
Decision Assistance Systems
These systems assist in making a choice, in making the very best decisions by creating analytical forecasts from analyzed information.
Executive Information Systems
This is a tool utilized for reporting enterprise-wide data to the management. These systems provide quick and easy to use reports that exist in visual screens that are easy to compare.
Management Information Systems
This is relationships between technology, people, and organizations. MIS specialists assist firms realize optimal take advantage of investment in personnel, equipment, and organization processes.
What is risk management?
Risk management is the process of identifying and reducing potential schedule and technical problems throughout a project, and the goal of risk management is the avoidance and control of any circumstance that might affect the job in a negative method. The task parts of risk management are evaluation, assessment, and mitigation.
What Is Management information system?
A Management information system (MIS) is a set of procedures that collects information from a range of different sources and assemble it to present it in an understandable format. Administrators utilize an MIS to develop reports that offer them with a comprehensive overview of all the details they need to make decisions. Information systems place a higher focus on tools, while MIS places more emphasis on business processes and operations.
Management information systems consist of process control systems, personnel management systems, sales and marketing systems, inventory control systems, and many more.
Types of management information systems (MIS) Reports
At their core, management information systems exist to keep information and produce reports that organization pros can use to evaluate and make decisions. Here are the basic types of reports:
Created regularly, these reports use rules the requestor has provided to pull and arrange the data.
These are one-off reports that a user produces to address a question.
This kind of MIS report enables someone to keep an eye on changes as they happen.
How can organizations manage risks?
Mitigation of risk is the process of recognizing an alternative option to deal with an incident and choose if there is anything that can be done to remove or prevent it. In some circumstances, there is nothing you can do other than managing it.
Five Ways to Manage Risk in Information systems
There are five typical ways to manage risk, which include finding a way to avoid it, in a situation where possible the risk should be reduced to the barest minimum, transferring the risk, retaining the risk if the hazard is not too much, and exploit the advantages of the risk.
1. Avoiding Risk
Firstly, the easiest thing to do when preventing the possibility of loss arising from a particular activity is to entirely avoid it, while avoidance may be appropriate for a limited variety of risks that produce a high possibility of loss.
2. Reducing Risk
Secondly, when it became impossible to avoid an occurrence, it is advisable to take necessary steps to reduce the effect and prospective gravity of loss associated with the event.
3. Transferring Risk
Another method to deal with risks we are unable to prevent is to transfer them to a third-party. We can transfer risk in numerous methods. However, the most practical, cost-effective, and typical approach for high-severity risks with a low likelihood of an incident is through insurance coverage. If they occurred, the most effective usage of insurance coverage is to cover only the not likely potential losses which would financially devastate us. In these locations, we should seek to maximize our protection and reduce the cost.
4. Retaining Risk
Risk-retention typically is not the very best method if the prospective seriousness of a loss is high, even if the possibility of loss is low. We must be prepared to fund the loss ourselves when we keep a risk.
5. Utilizing Risk
Approval, avoidance, mitigation, and transfer are great to use when the risk harms the project. But what if the risk has a favorable effect? Positive risk is an occurrence that would have an advantage to the project and the business. In such cases, we want to maximize the chance that the risk takes place, not stop it from occurring or transfer the benefit.
About EC-Council University
EC-Council University offers programs that equip graduates with the knowledge and skills to assess and handle the latest IT security risks. The Bachelor of Science in Cybersecurity (BSCS) will help you gain domain knowledge to stand ahead of the competition.