Question

Why is it important for organizations that use Information Systems should also be using a Risk Management function to protect themselves and the consumers who purchase their products or services? Explain

Answer 1

When any data that is confidential or private in nature, is leaked to some individual or entity without authority or permission granted to such individual or entity, the same is termed as unauthorized data disclosure. The data so disclosed could be done either on purpose or inadvertently. In fact, in today’s world of internet and especially because of the rising concerns of the hacking activity, such unauthorized data disclosure may happen through malware, phishing or spoofing, etc. Employees who are new to the system are the most vulnerable lot. They may become victim of data hacking or breaching actions in an organization and in the process, may end up revealing the customer’s database and other important information to the competitors and other illegitimate beneficiaries. Hence to safeguard, both, the organization itself as well as the customers, it is essential that a definite Risk management function is in place when using or dealing with the Information Systems. This shall ensure high-level security of data held in the organization.