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

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.

An Overview of Trends in Information Systems: Emerging Technologies that Transform the Information Technology Industry

“…Today, new functionalities in the domains of medical, entertainment, business, training, marketing, law enforcement, etc. are being improved and introduced, however, end users' acceptance and engagement need to be considered for successful implementation of the new technology [91]. IT innovations impact internal business operations; however, they also change the way consumers purchase and provide assistance regardless of mentioning fundamental habits such as house locking, doctor visits, and keeping records.…”

Barriers to risk management in small construction projects in Sri Lanka

“…As indicated by the Construction Industry Institute (CII), the determination of a project's size was mostly dependent on intuition, which reflected the firm's size, kind of work, current work volume, and management approach (Assaad and El-Adaway, 2020). Smaller projects typically exhibit characteristics such as a reduced number of employees and formal controls, a more extensive contingency plan, and a greater reliance on standardized methods and the use of checklists (Taherdoost, 2021). As indicated by Johansen et al (2019), small projects were likely to have a short lifespan, greater uncertainty, and insufficient formal documentation.…”

“…This is attributed to the fact that these contractors lack substantial internal expertise in RM, particularly in using risk analysis tools (Loosemore et al, 2012). In addition, a large number of small and medium-sized businesses (SMCs) were discouraged from taking part in RM activities because of the discrepancy between the resources required to engage in RM and the constrained profit margins associated with smaller projects (Taherdoost, 2021). Additionally, due to the intense competition, small and medium-sized businesses are forced to submit proposals with prices that are too low for them to set aside extra funds for unforeseen circumstances (Pu et al, 2021).…”

Amoral behavior, control climate, job insecurity and fraudulent intentions among bank employees

“…It is common knowledge that no part of an organization, including the security system created to prevent fraud, is immune to fraudsters (Adewumi, 1986; Oke, and Offoha, 2021; Taherdoost, 2021). Fraud has resulted in the theft of millions of dollars from shareholders’ accounts, as well as a loss of trust among investors and the general public (Peterson and Buckhoff, 2004; Bierstaker et al , 2006).…”