Operating systems and computer systems security

Risk Management

Risk management is the sum of the cost balanced measures established to prevent, mitigate, or transfer risks. It also covers the methodologies used, the categories of measures in requirements and the measures taken to control the occurrence of risks. It begins with the assessment of the impending risks to which an organization is exposed, and then a risks risk strategy is developed so as to help effectively handle the identified risks (Von, 2007). The strategies to risk management are concerned with risk mitigation, risk avoidance, risks transfer, and risk acceptance and ignoring the risks. It is crucial that the risk appetite is known so that a given organization or agency can understand the risks that it is willing to take or face (Von, 2007).  Risk management is mandatory in any organization.

Business continuity

Business continuity encompasses risks management. It entails setting out a plan to make sure that risks are identified and addressed to ensure that the organization remains operational even in the event of a risk occurrence. It lays out the strategies to manage risks and backup and restore data so that there is no event that can completely make the organizational dysfunctional.  Business continuity focuses on the business functions and tries to ensure they remain at the optimum levels with minima interruption.

Link between Risk Management and Business Continuity

The two terms are linked in the sense that risk management is part of business continuity. To ensure that there is business continuity with minimum interruptions, risks management has to be done to ensure that the threats to the normal operations are effectively addressed (Snedaker & Rima, 2014). Therefore, none of the concepts exists on its won since they are interlinked.

Case studies

Case 1: Long Term Capital Management

In the Fall of 1997, the LTCM managers realized that they were facing a financial crisis and decided that they did not want to manage an enterprise earning just 17 percent for the investors (Stulz, 2009). They wanted higher returns as they had been achieved in previous years like 1995 and 1996. They decided to return 36 percent of the capital to the investors so as to increase leverage.  They thought that the decision would help to increase the company’s leverage, but it turned out to be a loss because when the assets fall in value, also the value of the equity of funds falls much faster.

Case 2: BP Disaster

Risks management factors were the cause of the failure of BP to contain its oil spill that occurred in 2010.  The offshore oil spill in the Gulf of Mexico resulted from a series of poor decisions that increased the risk as many other actions that failed to put the risk mitigation into consideration (Zolkos & Bradford, 2011).

References

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Snedaker, S., & Rima, C. (2014). Business continuity and disaster recovery planning for IT professionals. Waltham, MA: Syngress.

Stulz, R. (2009). Risk management failures. What are they and when do they happen? 

Von, G. A. (2007). Information and IT risk management in a nutshell: A pragmatic approach to information security. Norderstedt: Books on Demand.

Zolkos, R. & Bradford, M. (2011). BP disaster caused by series of risk management failures, according to federal investigation of Gulf spill.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in research paper company if you need a similar paper you can place your order for pre written essays.