Question

How do Risk Management functions and Information Systems resources complement one another?

Answer 1

Risk Management function refers to the process by which a company manages its internal-external processes, roles and relations in the market to achieve business goals and reduce the risk of loss and process failures.

Information system resources are the integrated setups installed under information technology base of any company to record, store and process the daily based transactions depending upon the business model.

Risk Management functions and Information Systems resources complement one another in the following’s ways:

· Information system ensure flawless transaction delivery that reduces the risk of system failure or fraud

· Information system detects the error that may require attention at financial or goodwill level and here risk management function manages it will

· Control mechanism works in collaboration with each other

· Any Information system failure may have organizational or human failure and that brings question on the risk management function

· One help to identify threat and other assist to control any adverse impact