Risk management is a set of processes and practices used to identify potential risks and limit potentially negative consequences. IT risk management applies risk management practices to IT, managing the business risk involved with all facets of how that business uses technology. In particular, the significant growth of the Internet of Things (IoT) has dramatically increased the number of risk management and security challenges businesses face. Cybercriminals are launching more sophisticated and potentially damaging attacks, and the number of devices that need securing goes up as the IoT expands.
Risk is inevitable; it can’t be completely avoided or eliminated, but it can be minimized. The ISO 31000 standards for risk management note that “risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety and societal outcomes. Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty.” In IT contexts, risk management enables organizations to effectively use technology—including emerging technologies like IoT—while mitigating inherent potential hazards, such as system failures, security breaches, data loss, and other scenarios.