infoTECH Feature

July 12, 2012

One in Five Enterprises Lags Far Behind in IT Risk Management, Says ParenteBeard

Enterprises belonging to all the market sectors have been adopting IT systems to streamline and simplify their operations. In order to combat various IT systems related risks, the formulation and implementation of an effective IT risk management policy is more than necessary for any enterprise.

ParenteBeard, an accounting firm based in the U.S., has announced in the results of its recent poll that around 19 percent respondents have clearly stated their companies are “behind the curve” in terms of managing the IT related risks.

An independent member of Baker Tilly International, ParenteBeard offers certified public accountant (CPA) and business advisory services to a large number of small businesses, middle market companies, not-for-profits and SEC (News - Alert) registrants.

The study suggests around 42 percent executives expressed during the survey that the IT success of their enterprises was “inextricably linked” to their overall business success.

While 67 percent of the respondents accepted that their IT risk management efforts were just “average,” only 15 percent of them said their companies followed some sorts of IT internal audit functions for proper evaluation of IT risk.

“At this point, nearly every company in business today relies on IT for critical aspects of their operation,” commented Jeff Vrabel, leader of manufacturing, distribution and technology practice at ParenteBeard. “However, many of these companies still need to significantly improve the effectiveness of the way they manage their IT and IT risks. Lack of sufficient controls in IT has led to the string of damaging data breaches we frequently read about in the news. The companies needing improvements have a tremendous opportunity in IT if they focus on it.”

Over 70 executives belonging to the manufacturing, distribution and technology industries had been surveyed in the poll conducted by ParenteBeard, which revealed that although IT systems have been increasingly creating a space for themselves in almost every business function, a large number of enterprises are still not equipped with internal controls for managing these systems effectively.

“Make no mistake – if sensitive or private data is hacked, companies will suffer consequences in the form of customer backlash, lawsuits or even government investigations,” said Jeff Krull, a partner in the corporate governance and risk management practice at ParenteBeard. “Companies need to take an integrated approach and include their IT leadership in any discussions about risk management practices.”

In February 2012, Dan Glennon, senior vice president of marketing and strategy at Cybera Inc., emphasized enterprise security risks and cloud-based services during a panel presentation titled “IT Risk Management: Securing the Cloud and the Enterprise” during ITEXPO (News - Alert) East 2012, held at the Miami Beach Convention Center in Miami, Florida.


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Edited by Braden Becker
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