Building an ITSM Risk Management Process

IT organizations operate in an evolving risk landscape. These risks can result in costly financial setbacks, tarnished reputations, legal challenges, compliance issues, and operational disruptions. That’s why it’s imperative your organization develops and implements a robust ITSM Risk Management process

If you want to develop an ITSM Risk Management process, you've come to the right place. For over 24 years, Navvia has helped organizations design and implement IT Service Management (ITSM) processes.

We’ve leveraged our expertise in Business Process Management (BPM) and IT Service Management (ITSM) to create this comprehensive guide for developing an effective ITSM Risk Management process.

How to Use This Information

In this blog post, we have compiled the essential elements of an ITSM Risk Management process, including its definition, goals, objectives, roles, activities, tasks, and key terms, providing you with the foundation needed to build your process.

We've organized this information so that you can easily incorporate it into your process documentation.  

But remember: Building a process should never be done in isolation. It would be best to have the involvement and cooperation of stakeholders from across the organization. 

• Start by identifying the stakeholders and understanding their roles and requirements.  
• Collect and review existing ITSM Risk Management process or procedural documentation.
• Build a straw model ITSM Risk Management process combining the collected information and information from this blog post.
• Conduct workshops with the stakeholders to tailor the process to your needs. 

The steps we've outlined are just an overview of what you must do.  Check out these resources for more information on best practices for designing a process! 

• Webinar:  Business Process Mapping Workshop: Master the Art of Creating Clear and Well-Designed Processes
• Article:  What Is Business Process Management
• Article:  An Introduction to Process Mapping

Table of Contents

The following table of contents will help you navigate this comprehensive guide to building an ITSM Risk Management Process:

1. Definition of ITSM Risk Management
2. The Goal of ITSM Risk Management
3. Key Objectives of ITSM Risk Management
4. ITSM Risk Management Roles
5. ITSM Risk Management Activities and Tasks
6. Process Relationships
7. ITSM Risk Management Definitions
8. Conclusion 

Definition of ITSM Risk Management

The ITSM Risk Management process aims to effectively identify, assess, and mitigate risks, primarily focusing on safeguarding IT products and services while achieving strategic objectives.

This process involves establishing governance structures and defining risk appetite and tolerance to ensure strategic alignment with business goals and integration with enterprise risk management.

The process employs quantitative and qualitative methods to assess risks, prioritize them based on their impact and likelihood, and address them through targeted strategies such as technical solutions, workforce training, and contingency planning.

The process also includes ongoing monitoring and management of identified risks and identification of emerging risks. 

ITSM Risk Management Activities

Here is a summary of the ITSM Risk Management activities. These activities, along with the individual tasks, are described in more detail later in this post:

• Establish Risk Framework and Culture:  Create a structured approach that integrates risk considerations into the organization's governance and operational practices, ensuring a resilient and risk-aware culture. 
• Risk Identification and Assessment: Identify, evaluate, and document potential risks to IT services and organizational objectives.  
• Risk Response and Mitigation:  Develop and implement strategies to address identified risks. 
• Risk Monitoring and Reporting:  The continuous tracking of identified risks and the effectiveness of implemented mitigation strategies. 
• Risk Documentation and Review:  Maintaining the risk register to ensure the systematic recording and evaluation of all risk management activities as well as updating policies and procedures as needed.

The Goal of ITSM Risk Management

The goal of the ITSM Risk Management process is to identify, assess, and mitigate risks across the organization to protect and enhance IT service delivery and strategic objectives.  Process objectives include:

Key Objectives of ITS Risk Management

Objectives support the goal of a process.  The following are the key objectives of the ITSM Risk Management process:

• Systematically identify, assess, and prioritize potential IT-related risks, including those related to IT services, infrastructure, security, and operations.
• Develop and implement strategies to mitigate risks to acceptable levels, optimizing risk responses to balance cost and benefit while maximizing IT value delivery.
• Establish continuous monitoring of the IT risk environment and regularly review and update risk management practices to remain agile and responsive to emerging threats and changing business conditions.
• Implement measures to protect IT services against disruptions, ensuring business continuity and the ability to recover promptly from major incidents or disasters.
• Maintain clear communication channels and reporting structures to ensure stakeholders are informed of risk landscapes and the effectiveness of risk management efforts, supporting informed decision-making.
• Ensure risk management activities are aligned with the organization’s strategic objectives and risk appetite, integrating IT risk management into business planning and decision-making processes.
• Ensure adherence to relevant regulations, standards, and governance requirements, minimizing the risk of compliance failures and maintaining operational integrity.
• Cultivate a culture of risk awareness and proactive risk management throughout the organization, encouraging employee engagement and accountability at all levels.

These objectives collectively aim to protect the organization's information technology assets and support its overall strategic goals.

ITSM Risk Management Roles

A process role is a defined position or function within a process or organization. It encompasses a set of expectations for what an individual or group is supposed to do. Roles help organize work and define who will perform specific tasks.

Here are some typical roles for an ITSM Risk Management process:

• Process Owner:  The Process Owner holds accountability for the entire process lifecycle, encompassing design, documentation, implementation, monitoring, and enhancement. They define and communicate the process's mission and goals to stakeholders, address cross-functional issues for consistent execution, and report on effectiveness to senior management. Moreover, the Process Owner drives improvement initiatives to adapt the process to changing needs and challenges.
• The Risk Manager directs daily operations, facilitates risk assessments and mitigation, and promotes consistency through training and communication.
• The Risk Owner manages risk within their area by understanding assigned risks, implementing mitigation strategies, monitoring levels, and reporting status. They ensure alignment with the organization's risk appetite and collaborate with Risk Analysts and the Risk Manager to address changes in risk levels and promote proactive risk management.
• The Risk Analyst identifies and evaluates risks by gathering and analyzing data. They use analytical tools to provide insights into risk exposures and trends, collaborating with Risk Owners to offer data-driven recommendations.
  
• The Information Security Officer protects digital assets by developing and enforcing security policies, conducting security assessments, and managing security incidents. They collaborate with IT and business units to ensure compliance and integrate security measures into the organization's risk management process.
  
• Stakeholders provide unique expertise. Executive Management sets risk appetite; IT Operations manage IT risks; Business Unit Leaders address specific risks; Project Managers handle project issues. Human Resources promotes a risk-aware culture, while the Finance Team assesses financial impacts. External Auditors offer insights, Internal Audit evaluates practices, Compliance and Legal ensure regulatory alignment, and Business Analysts provide data-driven assessments.  
  
  

ITSM Risk Management Activities and Tasks

Establishing a Risk Framework and Culture

Create a structured approach that integrates risk considerations into the organization's governance and operational practices, ensuring a resilient and risk-aware culture.  Tasks include:

• Define the Risk Management Framework: This initial step involves identifying and establishing a structured framework that outlines how risk management will be integrated into the organization. 
• Establish Governance Structures: During this task, roles and responsibilities for risk management are defined and established at all levels, from the board of directors to individual departments. 
• Define Risk Capacity, Appetite and Tolerance: This task involves engaging with stakeholders to determine the amount and type of risk the organization is willing to accept in pursuit of its objectives. Clear definitions of risk capacity, appetite and tolerance should be documented and communicated .
• Develop Risk Policies and Procedures: These documents outline the procedures for identifying, assessing, monitoring, and mitigating risks. Policies should cover various risk types—such as operational, financial, strategic, and compliance risks—ensuring a holistic approach to risk management.
• Develop Communication and Training Plans: Creating risk management framework training and communication plans involves developing strategies to ensure all organization members understand and apply the risk management framework effectively. 
• Implement Communication and Training Plans: Implementing risk management framework training and communication plans involves launching training programs to educate stakeholders on risk management principles, roles, and responsibilities. This includes using varied formats like workshops and online courses to cater to different needs. 

Risk Identification and Assessment

Identify, evaluate, and document potential risks to IT services and organizational objectives.  Key tasks include:

• Gather Information: This task involves collecting data and insights necessary to identify potential organizational risks.  Data can come from internal/external audit reports, technical evaluations (such as penetration tests or vulnerability scans), or data from other service management processes.
• Perform Risk Assessments: This task involves evaluating the collected data to identify risks and to determine their potential impact and likelihood, prioritizing them for further risk mitigation and response. Analyze data, applying qualitative and quantitative risk assessment methodologies to determine impact and likelihood.  Based on the analysis, categorize  and prioritize the risks and update the risk register. 
• Validate Risk Assessment: This task involves reviewing identified risks and their assessments with stakeholders to ensure their accuracy, comprehensiveness, and alignment with organizational objectives.
• Update Risk Register: This task involves documenting all identified and assessed risks in a centralized risk register, ensuring that it accurately reflects the organization's current risk landscape. 
• Assign Risk to Risk Owner: This task involves designating specific risks identified in the risk assessment to designated Risk Owners responsible for managing and mitigating them. The risk record is updated to reflect the assignment.
• Accept Assignment: This task involves the designated Risk Owner formally acknowledging their responsibility for the risks assigned to them. The risk record is updated to reflect the assignment.

Risk Response and Mitigation

Develop and implement strategies to address identified risks.  Key tasks include:

• Develop Risk Response Plans: This task involves developing risk response plans, specific strategies and actions to address identified risks, focusing on mitigating their impact, reducing their likelihood, or enhancing opportunities by capitalizing on potential positive outcomes associated with certain risks.  Strategies can include avoidance, transfer, mitigation, or risk acceptance. 
• Implement Risk Response: This task includes mobilizing resources, enacting specific actions outlined in the response plans, and employing preventative measures such as training staff, reallocating budgetary resources, or enacting new operational procedures to reduce the likelihood or impact of the risks.
• Monitor and Adjust Risk Response: This task involves the ongoing evaluation of the effectiveness of implemented risk responses to ensure they are achieving intended outcomes and effectively mitigating identified risks. This task includes tracking key performance indicators, collecting feedback, and assessing changes in the risk environment. 
• Communicate Risk Status: This task involves maintaining clear and ongoing communication regarding the current status of identified risks, implemented risk responses, and their effectiveness. 
• Conduct Post-Implementation Reviews: This review process seeks to assess the outcomes of the risk management actions taken, identify successes and areas for improvement, and capture lessons learned. 
• Document Lessons Learned: This task is essential for understanding what worked well, what did not, and how future risk management efforts can be improved.  The documentation includes specifics about the effectiveness of responses, challenges encountered, and successes achieved. 

Risk Monitoring and Reporting

Continuously tracking identified risks and the effectiveness of implemented mitigation strategies.  Key tasks include:

• Ongoing Risk Monitoring: This task aims to detect any changes in the risk environment and ensure that risk management strategies remain relevant and effective.  Ongoing monitoring helps in identifying emerging risks and assessing whether existing mitigation actions are working as intended.  
• Reviewing Risk Performance Metrics: This task involves the regular examination and analysis of key metrics and indicators that measure the effectiveness of risk management activities and strategies. This task aims to ensure that risk responses are achieving desired outcomes and to identify any areas where improvements or adjustments may be needed. 
• Conducting Regular Risk Assessments: This task involves evaluating the organization’s risk environment at scheduled intervals to identify new risks and reassess existing ones, with a keen focus on IT security vulnerabilities and the effectiveness of internal and external audit controls. The assessment includes identifying potential cybersecurity threats, evaluating the adequacy of IT security controls, and addressing findings from internal and external audits that may highlight control weaknesses or areas for improvement. 
• Updating the Risk Register: This task involves revising and maintaining the organization’s risk register to ensure it accurately reflects the current risk landscape.  Regular updates to the risk register are critical for providing a comprehensive view of risk exposure and supporting informed decision-making. 
• Communicating Risk Information: This task involves systematically disseminating risk-related data and insights to relevant stakeholders to ensure transparency, awareness, and informed decision-making throughout the organization.  The task incorporates multiple communication and reporting vehicles, such as detailed risk management reports for comprehensive analysis, dashboards providing real-time visualizations of key risk indicators, regular email updates summarizing risk developments, and meetings or briefings for direct interaction and discussion. 
• Facilitating Risk Review Meetings: This task involves organizing and conducting regular meetings where stakeholders discuss current risks, the effectiveness of implemented risk responses, and any necessary adjustments to the risk management strategy.  These meetings provide a platform for stakeholders to share insights, address challenges, and align on risk management priorities. 

Risk Documentation and Review

Maintaining the risk register to ensure the systematic recording and evaluation of all risk management activities as well as updating policies and procedures as needed.  Key tasks include:

• Maintain Risk Register: This task involves regularly updating the risk register to ensure it accurately reflects current risks, including newly identified risks and changes to existing risks. The risk register is thoroughly reviewed to verify the comprehensive documentation of identified risks, risk assessment findings, risk treatment strategies, and actions taken to manage risks. 
• Assess Effectiveness of Risk Responses: This task involves systematically evaluating the impact and results of the risk management strategies implemented to mitigate identified risks. The task includes analyzing performance metrics, reviewing incidents and reports, conducting surveys or interviews with key stakeholders, and comparing actual outcomes to the intended goals of the risk responses.
• Facilitate Internal Reviews of Policies and Procedures: This task involves organizing and conducting periodic evaluations of the organization’s risk management policies and procedures to ensure they remain relevant, effective, and aligned with current best practices and regulatory requirements. 
• Communicate Findings and Updates: This task ensures that all parties are informed about how well the implemented risk responses are performing, any identified weaknesses or successes, and details regarding modifications made to risk management policies and procedures.
• Support Continuous Improvement: This task aims to foster a culture of ongoing enhancement within the organization’s risk management practices by identifying opportunities for refining risk processes, policies, and procedures.  This task includes soliciting feedback from stakeholders, analyzing lessons learned from risk assessments and reviews, and integrating these findings into future risk management strategies. 

Process Relationships

Process relationships refer to the interactions and dependencies between different business processes within an organization. Understanding these relationships is crucial for ensuring that processes are aligned, efficient, and contribute to broader organizational goals. 

Here is a summary of some of the key process relationships. 

• ITSM Security Management: ITSM Security Management directly supports ITSM Risk Management by identifying and mitigating security risks, ensuring that security measures align with overall risk management strategies to protect IT assets and services.
• Financial Management for IT Services:  Supports ITSM Risk Management by assessing the financial implications of risks and ensuring that resource allocation aligns with risk tolerance and organizational objectives.
• Service Continuity and Disaster Recovery:  Supports ITSM Risk Management by establishing plans and procedures to ensure resilience and maintain business operations during disruptive events, thereby mitigating potential risks to service availability.
• Supplier Management:  Supports ITSM Risk Management by assessing and mitigating risks associated with third-party vendors to ensure compliance with service standards and minimize potential disruptions to IT services.
• Problem Management:  Supports ITSM Risk Management by identifying the root causes of incidents to mitigate recurring risks and improve the overall stability of IT services.
• Incident Management:  Incident Management relates to ITSM Risk Management by ensuring that incidents are promptly addressed and resolved, thereby minimizing their impact on service delivery and reducing potential risks to business operations.
• Change Management: Change Management supports ITSM Risk Management by assessing and controlling risks associated with changes to IT services, ensuring that modifications do not adversely affect service stability and performance.

For more information check out are article on The Benefits of Having a Strong Foundation of ITSM Processes. 

ITSM Risk Management Definitions

ITSM Risk Management has a language of its own.  Here are 20 of the top definitions used in ITSM Risk Management:

• Business Continuity Plan (BCP):  A strategic plan that outlines how an organization will maintain or restore critical operations and services in the event of a disruption or disaster. The BCP includes procedures for incident response, resource allocation, and communication to ensure rapid recovery.
• Compliance:  The adherence to established laws, regulations, standards, and internal policies that govern IT security and risk management practices. Compliance ensures that an organization meets legal and regulatory requirements and mitigates risks related to data protection, privacy, and organizational security.
• Incident:  An unplanned event that disrupts normal operations of an IT service, causing a reduction in service quality or availability. Incidents can lead to potential risks if not properly managed, highlighting the need for incident management processes to quickly restore services.
• Incident Response Plan (IRP):  A document that outlines the steps to be taken during and after an unexpected incident, such as a security breach or service disruption. This plan includes procedures for detection, containment, eradication, recovery, and lessons learned, ensuring an organized response to incidents.
• Residual Risk:  The amount of risk that remains after risk treatment measures have been applied. This includes any risks that could not be fully eliminated or mitigated and must be monitored and managed as part of the ongoing risk management process.
• Risk:  The potential for an event or situation to impact the achievement of objectives, either positively (opportunities) or negatively (threats). In ITSM, risks often relate to vulnerabilities in systems, potential security breaches, service disruptions, and the overall reliability of IT services.
• Risk Analysis:  The evaluation of identified risks to understand their nature and quantify their likelihood of occurrence and potential impact on the organization. This analysis can be qualitative (based on subjective judgment) or quantitative (based on numerical data and calculations).
• Risk Appetite:  Risk Appetite is the overall level and types of risk an organization is willing to pursue or retain to achieve its strategic objectives. It reflects the organization's risk-taking philosophy and strategic goals.
• Risk Assessment:  Risk Assessment is a systematic process consisting of three key steps: Risk Identification, which involves finding and listing all potential risks; Risk Analysis, where each identified risk is analyzed to estimate its likelihood and impact; and Risk Evaluation, which determines the acceptability of risks based on established criteria and decides on actions for managing significant risks. These steps collectively enable organizations to effectively understand and mitigate risks.
• Risk Capacity:  Risk Capacity is the maximum amount of risk an organization can assume given its financial resources, capabilities, and constraints, without endangering its stability or ability to achieve its objectives.
• Risk Evaluation:  The step where the results of the risk analysis are compared against risk criteria to determine the significance of each risk. Evaluating risks helps prioritize risk responses and actions based on the severity of the risks identified, guiding effective resource allocation.
• Risk Identification:  The proactive process of recognizing and documenting potential risks that could adversely affect IT services, projects, and overall business objectives. Techniques for identification may include brainstorming sessions, interviews, checklists, and analysis of historical data.
• Risk Management:  A structured approach that involves identifying, assessing, and prioritizing risks, followed by coordinated measures to minimize, monitor, and control the likelihood or impact of negative events. It aims to enhance decision-making and resource allocation within an organization.
• Risk Mitigation:  The process of taking steps to reduce the adverse effects or likelihood of risks occurring. This may involve implementing measures such as security controls, incident response plans, and training programs to minimize risks associated with IT services.
• Risk Record:  The entry stored in the risk register is typically referred to as a risk record. Each risk record includes details such as the risk description, likelihood, impact assessment, risk owner, mitigation strategies, status, and any actions taken or updates associated with that particular risk.
• Risk Register:  A comprehensive document or system that captures relevant details about identified risks, including their status, assessment results, risk treatment plans, and monitoring actions. It serves as a central repository for tracking ongoing risk management efforts and facilitating communication among stakeholders.
• Risk Tolerance:  Risk Tolerance is the the acceptable levels of variation in performance related to achieving specific objectives. It translates the broader risk appetite into actionable limits for decision-making in various contexts.
• Risk Treatment:  Risk Treatment is the process of selecting and implementing strategies to modify risk, which can include four common approaches: Avoidance, which eliminates the risk by changing plans; Reduction, which involves implementing controls to mitigate the likelihood or impact of the risk; Sharing, where risk is transferred to another party, such as through insurance; and Acceptance, acknowledging the risk without taking action, typically for low-impact risks.
• Threat:  Any event, circumstance, or action that has the potential to cause harm, damage, or disruption to IT systems or data. Threats can be intentional (e.g., cyber attacks) or unintentional (e.g., natural disasters), highlighting the importance of proactive risk management measures.
• Vulnerability:  A weakness or flaw in a system that can be exploited to gain unauthorized access or cause harm.

In Conclusion 

We hope you found value in this guide to building an effective ITSM Risk Management process. By implementing the strategies outlined, your organization can enhance its risk management capabilities, mitigate threats, and protect valuable assets.

Continuous improvement is vital in today’s dynamic risk landscape. Stay informed, vigilant, and prioritize risk management in your IT operations.

If you're interested in developing a more robust IT Risk Management process, contact us to learn how the Navvia Process Designer can assist you.

A robust ITSM Risk Management process is vital for protecting your information assets, operational continuity, financial resources, and reputation. Integrating risk management with your ITSM processes enhances organizational protection and builds stakeholder trust.