7. Technological Risk Management

Question 1

What does technology refer to in the context of a business?

Answer 1

A subset of production.

Question 2

(1)… may be defined as events that would lead to insufficient, inappropriate or mismanagement of investment in (2)…, in terms of manufacturing processes, product design and/or information management.

Answer 2

(1) Technology risk

(2) technology

Question 3

Name 3 scopes of technology risk?

Answer 3

1. Lack of investment in technology and not remaining competitive.
2. Inadequate technology governance.
3. Inadequate protection against viruses & hacking.

Question 4

Name 3 benefits of technology risk management?

Answer 4

1. Improves the quality of information.
2. Identifies certain risks within technology.
3. Forces continuous review of developments in technology.

Question 5

Name 3 technology types?

Answer 5

1. Information technology
2. Communication technology
3. Control technology

Question 6

Name 3 information technology tools?

Answer 6

1. Software applications
2. Intranets
3. Telematics

Question 7

Name 3 communication technology tools?

Answer 7

1. Conference calls
2. Broadband
3. E-mail

Question 8

Name 3 control technology tools?

Answer 8

1. Computer-aided design (CAD)
2. Computer-aided manufacturer (CAM)
3. Flexible manufacturing systems (FMSs)

Question 9

What are the risk for information technology tools?

Answer 9

The failure to collect, store, process and communicate information.

Question 10

What are the risk for communication technology?

Answer 10

The failure to work according to schedule as some might not know what to do due to lack of communication.

Question 11

What are the risk for control technology?

Answer 11

The incorrect functioning of these tools could lead to a decrease in design capabilities, speed & quality of manufacturing, productivity in general.

Question 12

Name 3 initiatives to mitigate technology risk?

Answer 12

1. IT governance
2. Investment
3. Projects

Question 13

What is the initiative of IT governance all about?

Answer 13

IT governance is all about putting IT systems and processes in place to create order in potential chaos. This also helps to manage potential risk.

Question 14

What is the initiative of investment all about?

Answer 14

This initiative is about how IT systems and processes can be used to help direct the company to make better investment decisions.

Question 15

What is the initiative of projects all about?

Answer 15

This initiative is about making sure that projects deliver on desired goals and not just another task that is been completed.