Reference no: EM133409461 , Length: Words Count:250

Assignment:

You listed a number of risks to an organization's mission. This week talk about how you would prioritize the addressing of those risks. Some might require leadership to balance resources between various departments of the organization to address IT risks, supply chain risks, market risks, etc. As a risk manager, how would you help leadership know what to address first?

Consider this:

Suppose the organization sales are a bit higher than expected and it has $50,000 available for investment back into the organization.

• The accounting department wants a $25,000 upgrade to its accounting software that has features to make report generation faster for the business office, including executives (15 minutes instead of the current two hours of writing report layouts, with filters and sorting rules).
• Manufacturing could get a new, faster piece of equipment for $50,000 to allow them to produce 5% more widgets every day.
• Security has noticed an increase in attacks on its e-commerce site and would like to install an intrusion prevention system for $10,000.
• The workers on the factory floor are demanding a salary increase to avoid a labor strike. It is estimated that the issue can be settled by adding $40,000 to the payroll budget.
• The warehouse needs two new forklifts to move pallets onto trucks at the shipping dock--one is to replace a forklift that is wearing out, and another is to be able to handle the increased volume of shipping over the past year. New forklifts are $30,000, and used ones are available without a warranty for about $15,000, but the forklift supplier has offered to sell them for $25,000 each if they purchase two new units.

The needs of the information risk management function go into a pool of departmental requests that leadership faces constantly, with competing priorities that each have various levels of risk to the organization. What criteria would you use to make a decision? Most risk reduction? Most increase in profitability? How would you balance those risks in deciding what to do with the $50,000?

Discussion post needs to be at least 250 words.