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Why is IT risk management important?

Given how much sensitive data is stored online, IT risk management is essential for virtually every company with an online presence. In fact, roughly half of all corporate data is stored wirelessly in the cloud. Even if an organization operates minimally online, it is still important to protect corporate data from online risks, vulnerabilities and security breaches.

Cybercrime continues to be a growing concern for businesses and individuals. Worldwide, the  is currently estimated to cost $6 trillion per year — a figure expected to rise to $10.5 trillion by 2025. The numbers alone show that the problem isn’t going away. Rather, the question is one of risk level. How vulnerable is each company’s infrastructure to a cyberattack?

When hardware, software or online systems are broken or damaged by a breach, companies can lose time, data, profits, network security and even stakeholders. If a company successfully implements IT risk management, employees might never know it since smooth, ongoing operations are the main benefit. 

IT risk management can also help companies drastically reduce costs. Though such strategies often require time and money to implement, they help protect corporate data against cyber attacks that introduce costly and time-consuming recovery processes.

Steps in the risk management process

Sometimes, the process or framework can mean the difference between smooth day-to-day operations and a serious cybersecurity threat. To prepare and protect a company from risk, IT departments will often complete the process.

Here are the major steps of the risk management process:

• Catalogue all IT assets
• Identify potential risks: Teams collectively assemble a list of potential risks and threats that could compromise company finances, operations or time.
• Analyze potential risks: After identifying risks, departments characterize each threat by frequency and severity. Department members determine how often a risk might occur, and how serious a risk could become if it did occur.
• Prioritize potential risks: Based on each risk’s characteristics, potential risks are then prioritized according to their potential for damage.
• Implement solutions to eliminate risks: Departments then take steps to address each potential threat by developing a framework, implementing solutions that minimize risks before they occur.
• Monitor results: After risk aversion solutions are implemented, companies should monitor the results of those solutions to determine their levels of success. This monitoring process typically includes a regular audit to determine when a new process might be necessary.

Together, the steps of this process contribute toward a single goal: keeping the company safe from IT and non-IT-related threats.

Many information technology departments use the IT risk equation to understand and assess the impact that potential threats might have. This equation calculates risk by multiplying several variables together: IT threats, vulnerability levels and the value of each asset. The variables in the equation aren’t meant to be replaced with numbers. Rather, IT departments will calculate risks by considering real-time threat levels, vulnerability levels and asset value together.

Who needs IT risk management framework?

Risk frameworks are typically for mid-size and large companies or organizations. Individuals and small companies can use some of the same strategies that larger firms rely on, but an overall framework isn’t necessary unless the company is involved in handling sensitive data or has some other heightened risk factor. 

The number of digital systems continues to grow, and the list of possible threats is growing with it. For large organizations and companies, such a framework is becoming ever more important. 

What threats do frameworks protect against?

The goal of such a risk framework is to protect against as many types of threats as possible. In today’s cybersecurity climate, such systems pay special attention to three types of dangers. 

Malware

Ransomware

Data breaches

Types of frameworks

NIST CSF

ISO/IEC 27001

FAIR™ framework

The uses a risk management framework that has very specific steps. It favors a proactive strategy that involves creating and perfecting risk models and assessing risks in a way that produces enough data to make informed management decisions. 

There is also a holistic element to the FAIR framework because it assesses cybersecurity risk as a whole, including people, processes and policies. It is described as a cost-effective option because it does not simply focus on adding new technology or investing in new systems. 

As you can see, there are various risk management frameworks. Which one a company may use depends on factors such as company size, level of security risk and other specific needs. Those who work with these frameworks directly contribute to the mission-critical processes that keep a company safe.

Finding the right cybersecurity risk management program after a thorough assessment can help curb security issues long term, so it’s important to find the right one for your organization or business.

General best practices for IT risk management

No matter the nature of your company, several best practices characterize IT risk management:

• Monitor and assess potential cybersecurity threats
• Familiarize company leaders with internal risk management processes
• Teach new risk management strategies, frameworks and compliance to employees
• Implement transparent policies
• Identify a “risk response” team in the event of a data breach

All business's risk management programs will differ from one organization to another. For example, social media platforms might spend more time on mitigation to protect customer preferences. By contrast, online retailers may implement risk identification strategies that protect customer payment information.

Jobs in IT risk management

You can participate in IT risk management through a wide variety of information technology positions. Whether you’re looking to lead an IT team, contribute to a cloud infrastructure or simply help an organization protect its online assets, there’s an IT role that fits the bill. One role, in particular, is that of information security analyst, who fulfill security protocols that protect a company’s devices and networks. As of May 2024, information security analysts , according to the U.S. Bureau of Labor Statistics (BLS).

Salary ranges are not specific to students or graduates of ���۴�ý. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. ���۴�ý does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.

Important skills and education for IT risk management

Many individuals pursuing IT careers first obtain a bachelor’s degree in information technology, a program that teaches basic IT terms and concepts.

Students interested in working to mitigate company cyber threats might instead select a bachelor’s degree in cybersecurity, where they’ll learn how to protect corporate data from a wide variety of potential cybersecurity threats.

To gain the knowledge base and experience for an IT risk management landscape, students might also consider one of several master’s degrees in information science.

For candidates looking to further pursue an IT career in data protection, a master’s degree in cybersecurity is likely the best path forward.

In addition to the educational component of a career, students also need to build up a series of IT-related skills. These might include:

• Knowledge of coding languages
• Experience with cloud infrastructures
• Database management
• Technical writing and revision
• Leadership in an IT environment
• Creative problem-solving
• Communication and teamwork

Before you can begin work in an IT risk management role, you might also need to obtain one or more certifications, such as:

Depending on your technical position, you may also be required to obtain certifications in cloud platforms, programming languages, database development or other IT fields.

Learn more about IT risk management