IT risks and their connection with business risks

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IT risks and their connection with business risks

Nowadays, we can confidently say that we live in an age where technology shapes the future. Anyone involved in real-time business knows how important technology has become for business. In the early stages, businesses were fully dependent on manpower, but with the development of technology, businesses are striving to evolve with it. Regardless of the direction of the business, technology is important for its efficiency and success. Since technology is integral to business, business risks include IT risks.

All types of modern technology have both positive and negative consequences for society, and in turn contain environmental, technological and social risks. Risk is a potential opportunity to get an unknown negative result in conditions of perceived and future uncertainty.

The scientific literature notes that information uncertainty (lack of information about possible states of the system, the external environment, etc.) is the environment of risk. The problems of development and functioning of the software and mathematical software in principle differ from most technical problems. The main risk factor is related to the fact that there are fundamental reasons why software cannot be made so reliable that there can be no doubt that there will be no abnormal situation and unauthorized operation of systems. At the same time, the risks increase with the growth of the scale and complexity of system engineering complexes.

Classification of business risks

Considering business risks, it can be argued that there is no single view of risks and their correlation (or identity) with business risks. Dividing risks at the level of an enterprise or corporation into the market, business (business risks), operational and credit risks, there is a big mistake in classification, namely, there is an artificial narrowing of the scope of business risks, which includes only those risks that are directly related to the company’s business operations in its supply and sales markets.

Given the above, it should be noted that the concept of business risk is much broader. It is closely related to the probability of failure of the company to receive the expected financial result due to the influence of numerous external and internal factors. Its difference from entrepreneurial risk is that the latter, in addition to business risks, also covers the risks of its owners (shareholders, participants, shareholders). From the point of view of business risk assessment and control, one of the main factors is the qualitative nature of the risks under study.

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