INFORMATION SYSTEMS CONTROL AND AUDIT

Submitted by:

DIVYA S

20BBA0144

RISK MANAGEMENT:

Risk management is the process of identifying, assessing and controlling threats to an

organization's capital and earnings. These risks stem from a variety of sources including
financial uncertainties, legal liabilities, technology issues, strategic management errors,
accidents and natural disasters.

COMPONENTS OF RISK:

1. Schedule risk:

Schedule risk is the likelihood of failing to meet schedule plans and the effect of that failure.
It exists in every schedule and is impossible to predict, with complete confidence, the length
of time necessary to complete an activity, meet a milestone, or deliver a system.

2. Cost risk:

Cost risk. This is the risk that the project costs more than budgeted. Cost risk may lead to
performance risk if cost overruns lead to reductions in scope or quality to try to stay within
the baseline budget.

3. Performance risk:

Performance risk is the risk that the buyer, who owes the money, can legitimately avoid
paying because the supplier has failed to do a good job.

4. Support risk:

It is the degree of uncertainty that the resultant product will be easy to correct, adapt and
entrance.