Question

Discuss at least one advantage and disadvantage of implementing an IT-based system. Identify at least one inherent operational and financial risk in using computerized reports. Propose at least one mitigation risk strategy and justify your recommendation.

Answer 1

One advantage of implementing an IT based system is the easy accessibility of data. When an IT based system is implemented then data can be accessed from anywhere and at any time. Location and time constraints will become irrelevant and this is a significant advantage.

One disadvantage of implementing an IT based system is that the possibility of data being stolen becomes open. Data stored in an IT system is susceptible and vulnerable to being stolen through hacking. The data also becomes prone to being lost due to virus infections that may plague the IT system.

One inherent operational and financial risk in using computerized reports is that the files containing the computerized reports can be deleted – either accidently or deliberately. This will lead to a paralysis of the company’s operations and its support functions as well. The financial risk of this is costs arising due to delay and failure of operations.

One mitigation strategy that I will propose is the use of cloud computing. In case of cloud computing an organization does not have to maintain its hardware and software infrastructures. Also there is no need to maintain a back up. All data and computerized reports are stored on cloud that can be accessed quite easily. This recommendation can be justified on the grounds that the data is easily accessible and is not prone to loss and hence there are no operational risks.