BEC 6 M6: Systems Development and Maintainance

Question 1

4 types of reporting risk that an accountant must recognize as threats to accuracy of reports

Answer 1

1. Financial Risk: loss of a valued asset
2. Information risk: theft/destruction of info
3. Strategic risk: picking wrong tech
4. Operating risk: doing the write things the wrong way (giving someone the wrong access)

Question 2

Direct Changeover/big bang adoption

Answer 2

when a new system replaces an old one, eliminating the possibility of operating in two systems

Question 3

change management

Answer 3

where a company implements new technology and hires an individual to help document new policies/procedures and develop training

Question 4

IT risk Framework by ISACA objectives

Answer 4

1. integrate the mgt of IT risk into overall risk mgt of enterprise
2. make well-informed decisions about the nature and extent of risk, risk appetite and ris tolerance
3. develop a response to risk

Question 5

Three categories of IT risk

Answer 5

1. IT Benefit/Value Enablement Risk: missed opportunities to use tech to improve business processes
2. IT program and project delivery risk: Related to contribution of IT to new/improved business solutions
3. IT operations and service delivery risk: related to all aspects of the performance of IT systems/services