Risk Management – An Increasingly Important Factor in Business

Risk has always been a part of business, whether it is related to investment in new technology or taking on board a new vendor. There is a risk factor in all daily decisions. Standards have been applied for a long time as a tool to reduce risk and assist better decision making. ISO 14001 helps companies deal with environmental risk, ISO 27001 offers companies a way to manage information security risk and ISO 9001 is all about quality.

London was the victim of terrorist attacks three years ago, hurricane Wilma and Katarina shook USA and tsunami devastated Indonesia. It seems that every month a new type of threat shows up.

Today, companies need to start thinking about the swine flu as a threat to business continuity. Most recent news states that the flu virus may mutate into a drug resistant dangerous illness. So we have to hope for the best but be prepared for the worst. The H1N1 virus started a chain of events which greatly affected the world economy.

You can know about the online payment risk management solutions via various online sources.

Risk Management @ NPCI NPCI - National Payments Corporation of India

Based on those facts it is not strange that risk management and business continuity are issues frequently seen in the media. Despite an increased awareness of these things, companies continue to expose themselves to unnecessary risk by not organizing protection for their information systems and preventing disruptions in their supply chain.

Surveys reveal a direct correlation between the level of implementation of information security standards within an organization and how prepared that organization is for dealing with security incidents. A survey conducted by British Standards Institution (BSI) found that 78% of companies that have implemented security standards feel they are ready for security attacks compared to 28% of e companies that have not implemented information security standards.

Additionally 71% of companies that have implemented information security standards feel they are ready to deal with incidents in their supply chain compared to 43% that have not implemented information security standards.