Enterprise risk management (ERM) is a holistic and strategic approach to managing the risks that an organization faces across its various functions, processes, and activities. ERM aims to align the organization’s risk appetite and tolerance with its objectives and vision, and to optimize the value and performance of the organization1.
IT risk management is a subset of ERM that focuses on identifying, assessing, and mitigating the risks related to the use of information technology (IT) in the organization. IT risk management aims to ensure the confidentiality, integrity, and availability of IT resources and information, and to support the IT governance and strategy of the organization2.
The greatest benefit when ERM provides oversight of IT risk management is aligning IT with short-term and long-term goals of the organization, because it can help to:
Integrate IT risk management with the overall business strategy and risk management, and ensure that IT risks are considered and addressed at the enterprise level
Align IT risk appetite and tolerance with the business risk appetite and tolerance, and ensure that IT risks are balanced with the expected benefits and opportunities
Enhance IT risk awareness and communication among the stakeholders, and ensure that IT risks are reported and escalated appropriately
Optimize IT risk response and control, and ensure that IT risks are managed efficiently and effectively
Demonstrate IT risk value and impact, and ensure that IT risks are measured and monitored against the business objectives and performance34
The other options are not the greatest benefit when ERM provides oversight of IT risk management, but rather some of the outcomes or consequences of it. Ensuring the IT budget and resources focus on risk management is a benefit that can help to allocate and prioritize the IT resources and funds according to the IT risk level and the business needs. Ensuring senior management’s primary focus is on the impact of identified risk is a benefit that can help to increase the senior management’s involvement and accountability in IT risk management, and to support the IT risk decision making and reporting. Prioritizing internal departments that provide service to customers is a benefit that can help to improve the quality and efficiency of the IT service delivery and customer satisfaction. References =
Enterprise Risk Management - ISACA
IT Risk Management - ISACA
Aligning IT risks with Enterprise Risk Management (ERM)
Five Benefits of Enterprise Risk Management : Articles : Resources …
[CRISC Review Manual, 7th Edition]
