Risk management seminar
Part 4
Classification of risk
Risk can be classified into several distinct classes. The most important include the
following:
1. Pure and speculative risk
2. Diversifiable and nondiversifiable risk
3. Enterprise risk
4. Systemic risk
3 November 2021
Definition of risk and its types
Types of IT risks
2. Electronic threats - aiming to compromise the business information - e.g.: a
hacker could get access to your website, your IT system could become
infected by a computer virus, you could fall victim to a fraudulent email or
website. These are commonly of a criminal nature.
3. Technical failures - such as software bugs, a computer crash or the complete
failure of a computer component. A technical failure can be catastrophic if
you cannot retrieve data on a failed hard drive and no backup copy is
available.
4. Infrastructure failures - such as the loss of your internet connection can
interrupt your business - e.g.: you could miss an important purchase order.
5. Human error - is a major threat - e.g.: someone might accidentally delete
important data, or fail to follow security procedures properly
3 November 2021
Definition of risk and its types
4. Cybersecurity and identity theft
• Cybersecurity and identity theft by thieves breaking into firms’ computer
system and database are major problems for many firms.
• Computer hackers have been able to steal hundreds of thousands of consumer
credit records, which have exposed individuals to identity theft and violation of
privacy. As a result, commercial banks, financial institutions, and other
business are exposed to enormous legal liabilities.
• Other crime exposures include robbery and burglary; shoplifting; employee
theft and dishonesty; fraud and embezzlement; piracy and theft of intellectual
property, and computer crimes.
3 November 2021
Definition of risk and its types
SBU definition with using 7S Methods
SBU - Euromedica s.r.o.
Strategy : corporate strategy for 2020 – 2023, integrated with financial strategy
and HR strategy.
Structure :
Managing board, Supervisory board.
Direktor.
IT Servises.
Sales Department.
Ekonomics Department.
Logistik manager.
Systems :
IT Systems – MS Office, MS SQL Server
Account system Money S7
Small company managed by direcktor and head off the departments.
Marketing system integrated in Money S7.
Logistik system integrated in Money S7.
Style: process oriented organization, with process maps and managed dokumentation.
Staff:
Managing board 3 persons.
Supervisory board 3 persons.
Direktor 1 person.
IT department 3 persons.
Logistik manager 1 person.
Sales department : 12 persons.
Economy department : 2 persons.
Skills:
Categorizing date.
Audit skills.
Process modeling.
Process analyzing.
Project management.
Lead auditor for ISO 9001, 14001, 18001, 20001, 27001.
Coordinating.
Risk management.
Shared values:
Strategic thinking.
Interviewing.
Diplomacy.
Advising.
Types of risks
Human factor :
Substance abuse
Stres sitaution
Certifikation
Information and technology risks:
Integrity of application systems
Incorrectly specified requirements for HW and SW and their evaluation
Unauthorized use of information, destruction, damage and its modification
Intentional interference with SW or HW
Operation risks:
Defective feedback system
Complexity of processes, operations
Organizational risk:
Ineffective methodological, control activities and
supervision
Non-optimized circulation of documents, records,
shredding of documents
Financial risk:
Manipulation of income and expenses
State guarantees, financial assistance
Thank you for your attention!
Definition of risk and its types