Energy restrictions or shortages Employee skills and capability • • • • Election of government officials with new Process modification without proper change • • political agendas management procedures New laws and regulations Process execution errors • • Public policy, including higher or taxes Poorly designed processes • • Suppliers cannot deliver quality goods on • • time Privacy Insufficient capacity to handle peak IT usages • • Terrorism Data or system unavailability • • Corporate citizenship Poor systems selection/development • • Human resource issues causing production • • shortages or stoppages Changing demographics, social family Security breaches • • structures, and work/life priorities • • New e-business technologies that lower • infrastructure costs or increase demand for IT-based services Emerging technology • Increased or decreased availability of data • Interruptions or downtime caused by external • parties 7.9 Explain what is meant by objective setting and describe the four types of objectives used in ERM. Objective setting, the second ERM component, is determining what the company hopes to achieve. It is often referred to as the corporate vision or mission. The four types of objectives used in ERM are: Strategic objectives are high-level goals that align with the company’s mission, support it, and create shareholder value. Management should identify alternative ways of accomplishing the strategic objectives, identify and assess the risks and
• Energy restrictions or shortages • Employee skills and capability • • • Election of government officials with new political agendas • Process modification without proper change management procedures • New laws and regulations • Process execution errors • Public policy, including higher or taxes • Poorly designed processes • • Suppliers cannot deliver quality goods on time • Privacy • Insufficient capacity to handle peak IT usages • Terrorism • Data or system unavailability • Corporate citizenship • Poor systems selection/development • Human resource issues causing production shortages or stoppages • • Changing demographics, social family structures, and work/life priorities • Security breaches • • • New e-business technologies that lower infrastructure costs or increase demand for IT-based services • Emerging technology • Increased or decreased availability of data • Interruptions or downtime caused by external parties 7.9 Explain what is meant by objective setting and describe the four types of objectives used in ERM. Objective setting, the second ERM component, is determining what the company hopes to achieve. It is often referred to as the corporate vision or mission. The four types of objectives used in ERM are: Strategic objectives are high-level goals that align with the company’s mission, support it, and create shareholder value. Management should identify alternative ways of accomplishing the strategic objectives, identify and assess the risks and
rais12_SM_CH07.docx