A Review on Risk Management in Information Systems: Risk Policy, Control and Fraud Detection

Hamed Taherdoost

doi:10.3390/electronics10243065

Abstract

Businesses are bombarded with great deals of risks, vulnerabilities, and unforeseen business interruptions in their lifetime, which negatively affect their productivity and sustainability within the market. Such risks require a risk management system to identify risks and risk factors and propose approaches to eliminate or reduce them. Risk management involves highly structured practices that should be implemented within an organization, including organizational planning documents. Continuity planning and fraud detection policy development are among the many critically important practices conducted through risk management that aim to mitigate risk factors, their vulnerability, and their impact. Information systems play a pivotal role in any organization by providing many benefits, such as reducing human errors and associated risks owing to the employment of sophisticated algorithms. Both the development and establishment of an information system within an organization contributes to mitigating business-related risks and also creates new types of risks associated with its establishment. Businesses must prepare for, react to, and recover from unprecedented threats that might emerge in the years or decades that follow. This paper provides a comprehensive narrative review of risk management in information systems coupled with its application in fraud detection and continuity planning.

Highlights

As different businesses are changing to become more complex, information and data processing plays an important role in the effective operation of different departments within an organization
We aim to present a comprehensive overview regarding the role of risk management within information systems to provide advantageous information for both researchers in the field and industry decision-makers
With growing complexity in different businesses, information and data processing plays an important role in the effective operation of departments within an organization

Summary

Introduction

As different businesses are changing to become more complex, information and data processing plays an important role in the effective operation of different departments within an organization. The advances in computer-based systems have largely contributed to the development of systems to streamline the specific practices associated with data processing, collecting, storing, processing, analyzing data, and extracting and disseminating information for particular purposes. Such systems are referred to as information systems (IS) which play important roles within an organization aiming to increase the effectiveness of managerial decision making [1]. A great example of the importance of an information system within an organization is the Amazon

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