8.1 Operational Risk Assessment

This topic explains the Operational Risk Assessment.

Operational Risk Assessment

The automated system consists of FCIS software that runs on a client server based technology with desktops connected to either Windows NT base Web Server which connects to a Windows NT server or UNIX based server hosting the Oracle Database server.

There are some risks involved in the implementation of a new system and the maintenance of an existing one. Some risks are controllable while others are not. But the degree of non-controllable risks, such as natural disasters, can be minimized. This chapter deals with risks and their corresponding protective measures. The risk analysis is geared toward the security of hardware and software. Tight security and backup systems are the most important elements. Adequate training for the personnel who will be dealing with the computer is also very important. The basic contents of the risk assessment are as follows:

• Brief Description of Location and Operations
• Major Causes of the Operational Risks

Brief Description of Location and Operations

A brief description of the location and the operations of the AMC should be indicated in the assessment.

Major Causes of the Operational Risks

The following type of critical factors which present operational risks are to be considered:

• Political or Civil Unrest
  • Political or Civil disturbances
  • Strikes and Riots
  • Insurrection etc.,
• People Related Risks (Internal)
  • Illness or Injury
  • Non-adherence to established procedures
  • Shortage of training in established procedures
  • Deliberate or Negligent acts

Risks involved

The risks involved can be loss of customers, fraud, processing errors, delays which include information modification, loss of information, data omission, damages to hardware, etc.,

• People Related Risks (External)
  • Intrusion
  • Theft of equipment, etc.,
• Utility Related Risk
  • Electricity
  • Communication
  • Voltage stabilizer
  • Air Conditioning etc.,

Power loss causes processing errors and delays, and a total memory loss in computers. Irregular or faulty power lines can alter the data being processed and/or cause permanent damage to the computer.

• Neighborhood Hazards
  • Proximity to chemical or explosive operations
  • Nearby building or floor that constitutes a fire hazard to the operation
  • Potential risk of leakage or burst in the water pipes on the premises
  • High crime areas