The Mechanics of Managing it Risk *

Abstract

The application of formal risk management to IT projects is rapidly growing in popularity. Numerous books and articles on the subject of IT-oriented risk management have appeared, where a decade ago there were virtually none. In this paper, a short tutorial on the general processes and activities involved in performing IT risk management is presented. Some of the practical issues that require attention when putting IT risk management into practice are also discussed. Effectively applied, risk management is a powerful tool for making an IT project proactive. However, poorly applied, risk management can just as easily lead an IT project into ruin.