Modern information technologies are very closely integrated into the business processes of the company, connecting all services and levels of the enterprise. Consequently, any change in the information infrastructure has a direct or indirect impact on all aspects of the enterprise. This circumstance greatly complicates the analysis of the effectiveness of IT implementation, as it is very difficult to isolate the impact of information technology on the functioning of the company as a separate variable and it is difficult to cover all areas of influence of the IT used.
That is why it is important to understand the size of the potential impact of IT risks in business. Organizations that implement a risk analysis system in the process of business planning and performance evaluation with Digital Uppercut (https://www.digitaluppercut.com/), as a rule, achieve strategic and operational goals faster, and an integrated combination of business, technology development and risk management strategy ensure early identification of all possible threats and conflicts of interest.
Much attention in business management is paid to the most effective systems for assessing and controlling business risks, reducing risk, controlling costs, preventing adverse events and protecting the brand, as well as focusing on the development of a risk management strategy that contributes to the growth of business efficiency.
Methods of qualitative analysis and quantitative risk assessment in business
Decision-making is the basis of business activity, in the process of which, among the proposed options, it is possible to make a choice and choose the best one for decision-making. Lack of choice complicates the decision-making process.
The probable nature of economic decisions made under conditions of risk can be identified using certain methods of risk analysis and their impact on business activities. Finding such a solution among the possible ones that would have a justified risk is one of the main tasks of qualitative and quantitative risk analysis.
In modern practice, scientists consider two groups of business risk assessment methods: quantitative (mathematical, statistical and probabilistic) and qualitative (modeling, optimization and game theory, stochastic programming methods and analogy). Others provide a list of methods only in general form and consider some of them: statistical, expert, calculation and analytical. The study of risks in various areas of business activity in the current conditions is relevant and widely used, and the palette of risk analysis procedures provides the study of both qualitative and quantitative methods of risk assessment, which complement each other.
Qualitative analysis can be relatively simple, its main task is to outline the degree of risk, namely the permissible limit for the firm, risk factors and phases of work, during which the risk arises, that is, to determine the threatening areas of risk, and then describe all possible risks, obtain information about the structure, properties of the object and existing risks, as well as the study of the level of risk.
Characteristics of methods of qualitative risk assessment
Thus, modern science systematizes the understanding of the level of risk and presents it as an assessment of the possibilities of the consequences of events and the corresponding probability that these events will occur. It should be emphasized that qualitative analysis precedes quantitative, i.e. the results obtained at the stage of risk identification are the initial information for quantitative analysis.
At the same time, there is another opinion that it is not always possible to divide these two stages into two separate independent parts: if the existing losses are investigated, then the causes are clarified, or – based on the analysis, risks and possible consequences are identified.
Also, we can not dismiss the fact that qualitative analysis is one of the most complex analyses in riskology, which requires comprehensive knowledge of the theory of economics, business and finance, to prepare a competitive specialist in the labor market of a particular direction.
Qualitative analysis is complemented by quantitative assessment of entrepreneurial risk, which consists in the numerical determination of the size of individual risks and risk in general. Quantitative expression of the level of risk can not be unambiguous. Depending on the method of risk assessment, its value may vary. Businesses should always strive to take into account the possible risk and provide measures to reduce its level and compensate for possible losses.