Information Technology Risk (IT Risk)

Information Technology Risk, IT risk, IT-Related Risk, or Cyber Risk is any risk related to information technology. While information has long been appreciated as a valuable and important asset, the rise of the knowledge economy and the Digital Revolution has led to organizations becoming increasingly dependent on information, information processing and especially IT. Various events or incidents that compromise IT in some way can therefore cause adverse impacts on the organization's business processes or mission, ranging from inconsequential to catastrophic in scale. Assessing the probability or likelihood of various types of event/incident with their predicted impacts or consequences, should they occur, is a common way to assess and measure IT risks. Alternative methods of measuring IT risk typically involve assessing other contributory factors such as the threats, vulnerabilities, exposures, and asset values.

Types of IT Threats

• General IT Threats: General threats to IT systems and data include:
  • hardware and software failure - such as power loss or data corruption
  • malware - malicious software designed to disrupt computer operation
  • viruses - computer code that can copy itself and spread from one computer to another, often disrupting computer operations
  • spam, scams and phishing - unsolicited email that seeks to fool people into revealing personal details or buying fraudulent goods
  • human error - incorrect data processing, careless data disposal, or accidental opening of infected email attachments.
• Criminal IT threats: Specific or targeted criminal threats to IT systems and data include:
  • hackers - people who illegally break into computer systems
  • fraud - using a computer to alter data for illegal benefit
  • passwords theft - often a target for malicious hackers
  • denial-of-service - online attacks that prevent website access for authorised users
  • security breaches - includes physical break-ins as well as online intrusion
  • staff dishonesty - theft of data or sensitive information, such as customer details.
• Natural disasters and IT systems
  • Natural disasters such as fire, cyclone and floods also present risks to IT systems, data and infrastructure.
  • Damage to buildings and computer hardware can result in loss or corruption of customer records/transactions.