6 Reasons Why it is Important to Conduct IT Risk Assessment

Information Technology has become one of the most important departments in various organizations worldwide. 

Whether it’s a learning institution, bank, hospital, or even a personal business venture, having a well-established IT infrastructure is essential to ensure efficient management and operation. 

It is one of the pillars upon which modern firms are built to help them create a robust network, reduce cost, and increase productivity. 

The fact that it is such a key module also makes it vulnerable to lots of dangers that can cause great damage to the firm. Thus it is important to do an IT risk assessment and take the appropriate measures to handle the threats.

What is IT Risk Assessment?

To fully understand the importance of the procedure one must be able to answer this question first. In general, it refers to the act of analytically inspecting the existing IT department within an organization to determine the threats that are being faced by the various components. 

This entails external threats that originates from outside entities such as malicious hackers and internal threats that comes from within, like poor access control on the resources. 

They are further classified according to priority. That is, threats that have a high likelihood of happening and will cause a huge damage if they do will be given higher priority than their counterparts. Here is why it is vital to conduct the assessment.

  • It creates awareness

It is good to be aware of the risks that you are facing instead of waiting until they actualize for you to start investigating what happened. 

An assessment will expose the parts that are susceptible to exploitation hence allowing you to take the appropriate course of action. For instance, if the security practices that are in place are outdated they make it much easier for an intruder to gain access. 

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Knowing this, you’ll have to update them to enhance security and prevent a breach.  It is also worth noting that not all vulnerabilities can be patched up. Some are of different nature and so all that you can do is to monitor them. 

Still, it is much better that not being in the know at all. See this link to learn more about the methodologies you can use for risk assessment https://www.nibusinessinfo.co.uk/content/it-risk-assessment-methodology.

  • It helps distinguish responsibilities

Sometimes the responsibilities of different departments tend to overlap. This creates confusion that might lead to some work not getting done as it should be. 

Also, it makes it hard to hold someone accountable if things go wrong. A risk assessment involves evaluating the personnel, their tasks, and permissions. This makes it easy to clearly distinguish the responsibilities of the various departments available. Therefore, the employees will be able to do their work much better.

  • It allows proper allocation and utilization of resources

In the absence of a proper plan it is difficult to allocate the available resources in a manner that will ensure proper utilization. 

A complete evaluation of the IT department helps determine what each area requires to effectively perform their task. Thus it becomes much easier to allocate the resources accurately and minimize wastage. This is a huge boost to productivity.

  • It helps the organization stay up-to-date

Since the assessment will allow identification of outdated components the firm will be able to evolve and stay updated by replacing them with modern ones. This in turn enables better internal operations and also service delivery to consumers. Besides that, it reduces the risks faced by the company.

  • It is a mandatory requirement in some instances
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Some agencies such as insurance firms require that the company does a thorough risk assessment and provide a detailed report before they can be insured. 

This is understandable since it helps determine the level of risk that the company faces. Also, the report can come in handy when you are looking for business partners and customers. It shows that the company takes security seriously and is safe to deal with  software business.

IT Risk Assessment is a procedure

  • It improves coordination

The procedure cuts across all the units within the IT department and can also involve other related departments. 

It results in a robust arrangement and organization that improves coordination hence promoting efficient workflow. 

The relations among the various entities involved will also be strengthened thereby creating a conducive workplace. Click here to read more.


IT Risk Assessment is a procedure that helps to identify and categorize the various threats that the organization faces as far as Information Technology is concerned. The goal is to identify and understand the threats to be able to come up with the right strategy for preventing their actualization. 

This can save the company a lot of money that would have otherwise been used to correct the damages. It also helps improve the current system to a better one that conforms to the modern standards hence promoting efficiency. In addition, the report generated afterwards serves as an assurance to the partners that the company is safe.