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CIS 8011 Module 9

This module discusses technology risk and its impact on digital innovation. It identifies key risks like cyber risk, security risk, and data vulnerability. The module outlines how risk management follows principles, a framework, and a process based on the ISO 31000 standard. It involves identifying, assessing, and mitigating risks. Technology risks to new innovations like artificial intelligence, autonomous vehicles, and nanotechnology are also examined. Exercises encourage learners to consider risks and mitigation strategies for issues identified in previous modules and how new technologies present new risks.

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78 views

CIS 8011 Module 9

This module discusses technology risk and its impact on digital innovation. It identifies key risks like cyber risk, security risk, and data vulnerability. The module outlines how risk management follows principles, a framework, and a process based on the ISO 31000 standard. It involves identifying, assessing, and mitigating risks. Technology risks to new innovations like artificial intelligence, autonomous vehicles, and nanotechnology are also examined. Exercises encourage learners to consider risks and mitigation strategies for issues identified in previous modules and how new technologies present new risks.

Uploaded by

AbdulSamad
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Module 9 - Digital Innovation: Technology Risk

Overview

This module discusses risk and its impact on technology. As this course is focused on digital
innovation it is fitting to review the risk inherent in technology. Module 7 and 8 identified issues.
These issues can be assessed by the amount of risk which they introduce into the organisation.
Once identified risks can be mitigated and managed.

Module Objectives

This module addresses the following objectives with regards to digital innovation
1. Risk management
2. Technology risk

Risk

Risk is a probability or threat of damage, injury, liability, loss, or any other negative occurrence
that is caused by external or internal vulnerabilities, and that may be avoided through preemptive
action. Integration or implementation of technology delivers changes to processes, technology
and culture, which can have a significant impact on the risk profile of an organisation. This is
known as delivered risk. Project risk is the probability of an issue arising which will impact the
implementation of the technology.

The Queensland Government (2005) published a Guide on Risk Management based on the ISO
31000 Standard.



The figure above outlines risk management, which is based the ISO 31000 standard, is a set of
principles, a framework and a process. Risk management needs to be applied to all components
of the plan namely business, information and technology. The different components contain
different risks for example:
1. People risk – the risk the people will not have the adequate skills to support the vision.
2. Process risk – the risk the processes will not be efficient enough or mature enough to
support the vision.
3. Technology risk– the risk the technology will not deliver the necessary requirements.
4. Supplier risk – the risk the vendor cannot deliver on the solution.
5. Organisation risk – the risk the organisation does not have the maturity to enable the
change.
6. Stakeholder risk – the risk the incorrect stakeholders are involved or the stakeholders with
insufficient accountability and responsibility.

Reading

Selected Reading Queensland Government 2011, A Guide to Risk Management, Australia,
https://www.treasury.qld.gov.au/publications-resources/risk-management-guide/guide-to-risk-
management.pdf


Read the following sections:
1. Risk and risk management
2. Relationship between risk management principles, framework and process
3. Principles of risk management
4. Risk management framework
5. Risk management process


Selected Reading

Kaplan, K & Mikes, A 2012, 'Managing Risks: A New Framework', Harvard Business Review, vol.
June 2012. <https://hbr.org/2012/06/managing-risks-a-new-framework>

From the articles risk categories, principles, a framework and process have been identified. The
aim of risk management is to understand the risk inherent in introducing something new into the
environment, risks from the external environment and risks from doing business (strategy risks).
It is important to identify, assess and if possible mitigate the risks. These provide organisations
with valuable insight into an issue which may cause damage to the organisation.

Technology Risk

By definition digital innovation is online. Therefore, it stands to reason that there is significant risk
which is present from an online perspective. The article outlines how it is possible to provide
insurance for some of this risk (risk mitigation).

The article identifies the following key risks:
1. Cyber risk the risk of being online and available
2. Security risk focussing on brand and reputation damage
3. Data vulnerability

In addition to the risk outlined in the below article, new technology or digital innovation is
reviewed in light of risk and covers the following:
1. Cyber intelligence
2. Big data
3. Internet of Things
4. Cognitive computing
5. Autonomous vehicles
6. Artificial intelligence
7. Synthetic Biology
8. Nanotechnology
9. Robotics


Reading

Selected Reading

Unkown 2015, Guide To: Technology Risk, StrategicRisk, USA.
https://www.aig.co.uk/content/dam/aig/emea/united-kingdom/documents/strategicrisk-tech-
risk-guide-june-2015-brochure.pdf>.


Read the entire article

Exercise
1. Consider Module 7 and 8 with the identified issues, identify some of the risks and
strategies to mitigate those risks?
2. How would new technology present new risks?


Module Review Questions
1. Why is risk important to digital innovation?
2. Based on Module 3, how would organizational growth influence risk when entering into a
contract with a startup?

Module Review Question Responses
1. Why is risk important to digital innovation?
a. Risk provides an important insight for organisations. The information can be used
to assess technology and innovation for organisations.
2. Based on Module 3, how would organizational growth influence risk when entering into a
contract with a startup?
a. Startup companies do not have a long track record of operation. As such entering
into contracts can be riskier than established organisations should the right
protections for organisations not be in place.

Module Summary

Risk is inherent in business. The amount an organisation is willing to enter into is normally defined
as part of their strategy or based on the potential rewards. Understanding risk enables
organisation to plan and react if a situation occurs. Cyber risk is ever present and can occur at any
time.


References

Government, Q 2011, A Guide to Risk Management, Queensland Government, Australia.

Kaplan, K & Mikes, A 2012, 'Managing Risks: A New Framework', Harvard Business Review, vol.
June 2012.

Unkown 2015, Guide To: Technology Risk, StrategicRisk, USA.
https://www.aig.co.uk/content/dam/aig/emea/united-kingdom/documents/strategicrisk-tech-
risk-guide-june-2015-brochure.pdf>.

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