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Risk analysis in accounting information system Essay

Category: Finance & Accounting Pages: 13 Type: Essay Level: Master
ysis," the starting point in an overall risk management process, is a systematic and analytical approach that identifies and assesses risks and provides recommendations to reduce risk to a reasonable and appropriate level. This process will enable senior management to understand their organization's risks to electronic protected information, and to allocate appropriate resources to reduce and correct potential losses.
Harmonized methods, inspired by risk management techniques, are needed to address, in a single comprehensive security management model, the existing and emerging threats to critical infrastructures, their vulnerability and criticality, and the defense layers and other cost-effective protective measures that can be implemented.
Risk assessment is the process of examining a project and identifying areas of potential risk. Risk identification can be facilitated with the help of a checklist of common risk areas for software projects, or by examining the contents of an organizational database of previously identified risks and mitigation strategies (both successful and unsuccessful). Risk analysis involves examining how AIS project outcomes might change with modification of risk input variables. Risk avoidance is one way to deal with risk: don't do the risky thing. The Accounting system may avoid risks by not undertaking certain projects, or by relying on proven rather than cutting edge technologies. Risk control is the process of managing risks to achieve the desired outcomes. Risk management planning produces a plan for dealing with each significant risk, including mitigation approaches, owners, and timelines. Risk resolution is execution of the plans for dealing with each risk. Finally, risk monitoring involves tracking the progress toward resolving each