Unit 6

Q1] What is risk treatment? What is competitive advantage and disadvantage?

Why it emerged as a factor?

Ans:- According to its definition, Risk Treatment is the process of selecting and

implementing of measures to modify risk. Risk treatment measures can include

avoiding, optimizing, transferring or retaining risk.

Risk Management is the path to sustainable competitive advantage. Successful

decision makers recognize that the future is uncertain. They consider the different

potential outcomes and make choices today which favor the likelihood of beneficial

outcomes in the future. This is risk management.

Effective IT- enabled organizations now quickly absorb emerging technologies, not to

gain or maintain the traditional competitive advantage, but to avoid the possibility

of losing market share when faltering systems make it impossible to maintain the

current standard of service.

As shown in Figure after the risk

management (RM) process team has

identified, analyzed, and evaluated the

level of risk currently inherent in its

information assets (risk assessment), it

then must treat the risk that is deemed

unacceptable when it exceeds its risk

appetite.

As risk treatment begins, the organization

has a list of information assets with

currently unacceptable levels of risk; the

appropriate strategy must be selected and then applied for each asset. In this

chapter, you will learn how to assess risk treatment strategies, estimate costs, weigh

the relative merits of the available alternatives, and gauge the benefits of various

treatment approaches.

Treating risk begins with an understanding of what risk treatment strategies

are and how to formulate them. The chosen strategy may include applying

additional or newer controls to some or all of the assets and vulnerabilities

found in the tables . It also explains the critical concepts of cost-benefit

analysis (CBA) and treatment strategy assessment and maintenance