This market study discuss the level of knowledge about Risk Management amongst organisations, the management of IT risks, government encouragements towards Risk Management, and the advantages/disadvan
March 21, 2005 (Press Release) --
London, UK, 21st March - Risk is inevitable within business environments. Managing risk is part of what organisations must do to create profits and shareholder value. DeveloperEye, the premiere online information resource for the European application development and IT community, discovered that many organisations neither manage risk well nor fully understand the risks they are taking.
DeveloperEye interviewed 650 organisations (500+ employees) within Europe to evaluate the level of knowledge and familiarity with the term; Risk Management. 64% of the respondents had a good knowledge of Risk Management and where able to give us the essence of what the term is all about. Another 31% gave us a fair explanation, but most of them were financial orientated. The remaining 5% of the respondents were unable to give any explanation at all.
Risk Management can be seen in relation the organisational response of companies to the challenge posed by dramatic changes of the economic and social impacts of natural hazards. Furthermore, Risk Management also involves evaluation of business strategy risks and the achievement of best practices.
Management of IT Risks
According to DeveloperEye’s study, most respondents allocate their budget to specific risk categories, and there are few procedures in place to quantify the benefits. As the nature of risk changes from preventing isolated events to management of integrated business exposure, it is time to have a more adaptable approach towards the management of risks.
Government Regulations and Encouragement
The importance of Risk Management can be seen in relation to the government initiative encouraging IT departments to adopt a risk-management program around open source. DeveloperEye reveal that regulations have had a positive impact on organisations, as they are now better-prepared and equipped to address risks. Most large organisations follow a policy of Risk Management, the finance sector remains at the top of the classification.
What kind of risks does an organisation face?
The majority stated that the dissatisfaction of the customers is the principal risk. Other essential risks are IT, computer security, competitors and the company’s image in the public eye.
To respond to risks, the most common measurement is the in-house regular audits. Secondly, incidental, failures and accidents are also widely used. It was less desirable to use external people to deal with these risks.
Advantages/disadvantages
DeveloperEye wanted to disclose the advantages of having Risk Management policies introduced. Factors like control and minimisation of the risks were not regarded as less important. Anticipation and risk prevention was the most important advantages.
Cost was the main reason why companies do not want to invest in Risk Management. Many respondents were hesitant to change, with the fear of ending up with a lot of paper work.
About DeveloperEye.com: DeveloperEye is the premiere online resource for the European application development and IT infrastructure communities. Localized news and events information coupled with technical articles, informed editorial and market studies.
DeveloperEye interviewed 650 organisations (500+ employees) within Europe to evaluate the level of knowledge and familiarity with the term; Risk Management. 64% of the respondents had a good knowledge of Risk Management and where able to give us the essence of what the term is all about. Another 31% gave us a fair explanation, but most of them were financial orientated. The remaining 5% of the respondents were unable to give any explanation at all.
Risk Management can be seen in relation the organisational response of companies to the challenge posed by dramatic changes of the economic and social impacts of natural hazards. Furthermore, Risk Management also involves evaluation of business strategy risks and the achievement of best practices.
Management of IT Risks
According to DeveloperEye’s study, most respondents allocate their budget to specific risk categories, and there are few procedures in place to quantify the benefits. As the nature of risk changes from preventing isolated events to management of integrated business exposure, it is time to have a more adaptable approach towards the management of risks.
Government Regulations and Encouragement
The importance of Risk Management can be seen in relation to the government initiative encouraging IT departments to adopt a risk-management program around open source. DeveloperEye reveal that regulations have had a positive impact on organisations, as they are now better-prepared and equipped to address risks. Most large organisations follow a policy of Risk Management, the finance sector remains at the top of the classification.
What kind of risks does an organisation face?
The majority stated that the dissatisfaction of the customers is the principal risk. Other essential risks are IT, computer security, competitors and the company’s image in the public eye.
To respond to risks, the most common measurement is the in-house regular audits. Secondly, incidental, failures and accidents are also widely used. It was less desirable to use external people to deal with these risks.
Advantages/disadvantages
DeveloperEye wanted to disclose the advantages of having Risk Management policies introduced. Factors like control and minimisation of the risks were not regarded as less important. Anticipation and risk prevention was the most important advantages.
Cost was the main reason why companies do not want to invest in Risk Management. Many respondents were hesitant to change, with the fear of ending up with a lot of paper work.
About DeveloperEye.com: DeveloperEye is the premiere online resource for the European application development and IT infrastructure communities. Localized news and events information coupled with technical articles, informed editorial and market studies.
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