Risk Mitigation in IT
Risk mitigation is a plan to mitigate the consequences of potential threats to a data center and to prepare for them. Risk mitigation, which is similar to risk reduction, aims to lessen the detrimental consequences that threats and catastrophes may have on business continuity (BC). Threats that might endanger a company include weather-related disasters, cyberattacks, and other factors that could physically or digitally harm a data center.
The process of creating choices and activities to increase opportunities and lessen risks to project goals is known as risk mitigation planning. The process of carrying out risk mitigation measures is known as risk mitigation implementation. Monitoring the progress of risk mitigation entails keeping track of known hazards, looking for new ones, and assessing the efficiency of the risk management process as the project progresses.
Strategies for Risk Mitigation
Figure 2 illustrates general criteria for implementing risk mitigation management methods. These choices are determined by evaluating the likelihood of an event occurring and the severity of the resulting consequences for a designated risk. While many initiatives and programs may benefit from these rules, not all of them do.
Options for addressing risk minimization include:
Assume/Accept: Recognize that a certain danger exists and consciously choose to accept it without taking further steps to manage it. Project or program leaders must provide their approval.
Avoid: Modify program specifications or limitations to get rid of or lessen the danger. A shift in budget, timeline, or technological specifications could allow for this modification.
Control: Put policies in place to reduce the possibility or effect of the risk.
Transfer: Assign power, accountability, and duty inside the company to a different stakeholder who is prepared to take on the risk.
Watch/Monitor: Keep an eye out for environmental changes that might have an influence on the nature or consequences of the risk.
For each of these choices, a strategy has to be created, put into action, and then its efficacy continuously assessed. Further details on managing alternatives are included in the section below on best practices and lessons gained.
From a systems engineering standpoint, the following, arranged in descending order of risk severity, are typical techniques for risk reduction or mitigation given recognized program risks:
increased management and technical evaluations of the engineering process
Particular supervision of the specified component engineering
Particular examination and testing of important design components
Quick prototyping and feedback from tests
Taking into account the removal of important design requirements
Fallback parallel developments are being initiated.
The MITRE SE may assist the client in evaluating the advantages of various risk mitigation strategies in terms of performance, schedule, and cost. MITRE SEs might assist the government in determining if the cost of “parallel” development mitigation could exceed two times, even though the amount of time it takes to complete the task would not be much longer (for example, twice the cost of parallel effort but with extra costs for program office and user involvement). MITRE SEs may utilize their experience in prototyping and experimenting to estimate the cost and duration of performing a prototype to assist reduce certain risks (e.g., requirements) or to undertake quick prototyping or modify operational needs. Contractual agreements may need to modify in order to include additional engineering reviews, special monitoring, and testing practices. By assisting in establishing the foundation of estimates for extra contractor efforts and offering a reality check for these estimates, MITRE systems engineers may assist the government in evaluating these (schedule and cost). Realistic evaluations of mitigation options can be aided by MITRE’s CASA [Center for Acquisition and Systems Analysis] and CCG [Center for Connected Government] Investment Management practice departments, which have expertise and a knowledge base in numerous development activities spanning a wide range of methodologies.
Risk Mitigation Types
Acceptance of Risk
Accepting risk is still seen as a tactic even if it has no less impact. When the cost of other risk management strategies, such risk avoidance or risk restriction, may be more than the cost of the risk itself, this tactic is often used. The risk acceptance approach is used by a business that wants to minimize costs associated with averting hazards that are unlikely to materialize.
Avoiding Risks
The antithesis of accepting danger is avoiding it. It is the course of action that eliminates all risk exposure. It is noteworthy that of all risk mitigation strategies, risk avoidance typically has the highest cost.
Limitation of Risk
The most popular risk management tactic used by companies is risk limiting. By taking some action, this method reduces the vulnerability of a corporation. It is a tactic that uses a combination of risk avoidance and acceptance, or an average of the two. An example of risk limiting would be a business acknowledging the possibility of disk drive failure and preventing a protracted outage by maintaining backups.
Transfer of Risk
Transferring risk to a willing third party is known as risk transference. For instance, many businesses outsource a variety of tasks, including payroll and customer support. If a company’s fundamental expertise is not taking on a transferred risk, then this might work to its advantage. It may also be used to help a business concentrate more on its core skills.
Thus, how can I balance my opportunities and risks while becoming a leader in Governance, Risk, and Compliance (GRC) and Business Continuity Management (BCM)?
These four risk mitigation techniques all need to be monitored. You must exercise caution in order to identify and respond to changes in the risk’s effect.