Unit 4 – Impact of the use of IT on Business Systems

Session 7 – Managing Risk

Managing Risks Starter Starter Activity Working with a partner: 1.Can you identify 2 ‘risks’ a business should be concerned with when monitoring its IT Systems? 2.Explain what you think ‘in-house’ and ‘external risks’ may be?

Unit 4 Learning Aims After completing this unit you should: 1.Understand the effect of developments in information technology on organisations 2.Understand how organisations respond to information technology developments 3.Be able to propose improvements to business systems using IT

2.2 Managing Risk (1) There are a number of possible risks: Cyber Crime – such as fraud, phishing, identity theft have developed as with the increased use of the Internet. Diverting Financial Assets – such as ‘megabyte money’ can be diverted by criminals quickly and easily across the internet. Denial of Service Attacks – occur when a website is bombarded with too many requests causing it to slow down or stall.

2.2 Managing Risk (2) Sabotage of Communications – may occur through viruses, software bugs, blocking devices can cause malicious or non-malicious delays to online services. Intellectual Property Theft – such as through the abuse of Copyright Laws in a malicious or non- malicious way Access Control Methods – using passwords and log in systems to reduce the opportunity for criminals to conduct phishing and identity theft.