Engaging in business activity always has associated with it some element of risk. Embedded in each risk is a probability that some threat, damage, injury, liability, loss or other negative business effect, caused by external or internal factors, may occur.
Unfortunately not all risks are identified.
Each risk, if realised, will affect the business with its impact ranging from minor to catastrophic.
Being in a position to identify that a risk exists, its nature, its potential impact and the likelihood of its occurring provides a business with the opportunity to take risk mitigation or avoidance action.
Knowledge of the business and the external factors affecting it is paramount to being able to effectively manage risk.
An established Enterprise Architecture is a tool that, wielded well, can assist the risk management process.
A well maintained Enterprise Architecture, containing mature and accurate information about the business and its external influencers, is a significant enabler of the business..
- With good information the opportunity to identify risk is increased.
- With good information to analyse the ability to determine accurately the impact of risk is enhanced.
- With the ability to answer ‘what if’ questions the capability to identify activities that either mitigate or avoid the risk is greatly improved.
An Enterprise Architecture can remove much of the ‘guesswork’ out of a business.Decisions can be made with a fuller understanding of the risks, their impact and what can be done about them.