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1 C Qualitative risk management is the process of subjectively determining the impact of an event that affects a project, program, or business A defines impact, B defines mitigation, and D defines quantitative risk assessment 2 B Risk is the possibility of suffering harm or loss A defines residual risk, C defines impact, and D defines threat
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3 A SLE is the value of the asset multiplied by the exposure factor 4 A Annualized rate of occurrence is defined as the frequency with which an event is expected to occur on an annual basis Answer B defines annualized loss expectancy Answer C defines exposure factor Answer D defines asset 5 E All listed items are business risks 6 D The Basel Committee defines operational risk as risk from disruption by people, systems, processes, or disasters Answer A defines credit risk Answer B defines market risk Answer C defines risk 7 C Equipment or software failure is a threat All other answers are examples of assets 8 B SLE = asset value ($5 million) * exposure factor (1/5) = $1 million 9 B ALE = SLE ($1 million) * annualized rate of occurrence (1/50) = $20,000 10 D A purely quantitative risk assessment is not achievable because it is impossible to define and quantitatively measure all factors On the other hand, a risk assessment that qualitatively evaluates risk is possible
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In this chapter, you will Learn why change management is an important enterprise management tool Understand the key concept of segregation of duties Review the essential elements of change management Learn a process for implementing change management Study the concepts of the Capability Maturity Model Integration
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It is well recognized that today s computer systems are extremely complex, and it is obvious that inventory management systems for large international enterprises such as Walmart and Home Depot are probably as complex as an aircraft or skyscraper Prominent operating systems such as Windows or UNIX are also very complex, as are computer processors on a chip Many of today s web-based applications are relatively complex as well You wouldn t think of constructing an aircraft, large building, computer chip, or automobile in the informal manner sometimes used to develop and operate computer systems of equal complexity Computer systems have grown to be so complex and mission-critical that enterprises cannot afford to develop and maintain them in an ad hoc manner Change management procedures can add structure and control to the development and management of large software systems as they move from development to operation and during operation In this chapter, change management refers to a standard methodology for performing and recording changes during software development and system operation The methodology defines steps that ensure that system changes are required by the organization and are properly authorized, documented, tested, and approved by management In this chapter, the term configuration management is considered synonymous with change management and, in a more limited manner, version or release control The term change management is often applied to the management of changes in the business environment, typically as a result of business process reengineering or quality enhancement efforts The term change management as used in this chapter is directly related to managing and controlling software development, maintenance, and system operation
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17 presented risk management as an essential decision-making process In much the same way, change management is an essential practice for managing a system during its entire lifecycle, from development through deployment and operation, until it is taken out of service To manage the system development and maintenance processes effectively, you need discipline and structure to help conserve resources and enhance effectiveness Change management, like risk management, is often considered expensive, nonproductive, unnecessary, and confusing an impediment to progress However, like risk management, change management can be scaled to control and manage the development and maintenance of systems effectively Recent legislation in the US aimed at regulating how firms manage their information, such as SarbanesOxley (SOX), have had an indirect effect on change management Although SOX does not mandate a specific change management methodology, it does mandate that IT processes be under the control of management, and change management is a crucial element in achieving the required level of control Change management should be used in all phases of a system s life: development, testing, quality assurance (QA), and production Short development cycles have not changed the need for an appropriate amount of management control over software development, maintenance, and operation In fact, short turnaround times make change management more necessary, because once a system goes active in today s webbased environment, it often cannot be taken offline to correct errors it must stay up and online or business will be lost and brand recognition damaged In today s volatile stock market, for example, even small indicators of lagging performance can have dramatic impacts on a company s stock value The following scenarios exemplify the need for appropriate change management policy and for procedures over software, hardware, and data: The developers can t find the latest version of the production source code A bug corrected a few months ago mysteriously reappears Fielded software was working fine yesterday but does not work properly today Development team members overwrote each other s changes A programmer spent several hours changing the wrong version of the software A customer record corrected by the call center yesterday, shows the old, incorrect information today New tax rates stored in a table have been overwritten with last year s tax rates An application runs fine at some overseas locations but not at other locations A network administrator inadvertently brings down a server as he incorrectly punched down the wrong wires A newly installed server is hacked soon after installation because it is improperly configured
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