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Showing posts tagged with #datacenter
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dennis_wenk | 17 Jan 2013 | 0 comments

A principal challenge many enterprises face is identifying exposures to their complex IT infrastructures.   There are considerable business dependencies on this strategic resource and weaknesses within the IT-infrastructure may lead to serious business interruptions.   It is not enough however, to merely identify weaknesses; the impact of those weaknesses must also be clearly understood and quantified.  This is an important point because it is difficult to know how much to invest to strengthen the infrastructure unless there is a sense of the size of the risk to the organization.

IT infrastructures can fail due to a wide range of events.  These events can be as simple as a process failure or as catastrophic as a full system crash.  It is unrealistic and costly to eliminate each and every harmful event; therefore, a priority ranking based on the consequence of the event is very useful.  Ranking the potentially damaging events based on...

dennis_wenk | 17 Jan 2013 | 0 comments

Oh yes you DO need to know Probability! Many of Professional and Thought-Leaders have said that ‘there is no reason to know probabilities to know that a big risk exists’ and that it should be intuitively obvious that losing a datacenter would be very bad.  So then, if the IT-infrastructure risk is so self-intuitive then value does not lie in identifying the most serious risks, these risks are self-evident. The value lies in determining the optimal ‘investment’ to mitigate the most serious risks.  In this context, optimal means to allocate the organization’s resources to those actions that will yield the best overall performance.

So even if these self-intuitive, gut feeling about the risks are right, it is not the most effective way to justify the appropriate level of investment.  The fact, this is the reason that many in IT find it difficult to provide a valid ROI for HA/DR solutions; because they fail to understand the value that...

dennis_wenk | 05 Oct 2012 | 0 comments

Basel II Accord for International Banking Operational Risk is defined as, “Risk of loss from inadequate or failed internal; processes, people, and systems or external events “.   When Processes, People or Systems fail, whether it be from internal or external events, the losses can be substantial.  As an example, the Ponemon Institute estimates that worldwide organizational are losing over $35 Billion monthly from data center downtime.  Nicholas G. Carr point out in his seminal Harvard Business Review article IT Doesn’t Matter, “today, an IT disruption can paralyze a company’s ability to make products, deliver its services, and connect with its customers, not to mention foul its reputation … even a brief disruption in availability of technology can be devastating.”

There are two primary ways for an organization to increase value.  The first way is to...

dennis_wenk | 05 Oct 2012 | 0 comments

The Effectiveness of internal control systems is now an issue for public policy and formal law. Section 404 of the Sarbanes-Oxley law is aimed at helping companies prevent financial reporting mistakes and fraud. The rule requires companies to include in their annual reports:

  • A statement of management's responsibility for establishing and maintaining "adequate" controls over financial reporting
  • Management's assessment of the effectiveness of the company's internal controls
  • A statement identifying the framework used by management to evaluate the effectiveness
  • An auditor's report on management's evaluation of internal controls
  • Any material weaknesses identified in the internal controls review

While the rule only requires companies to disclose material weaknesses in their annual reports, many companies have begun alerting investors about deficiencies and potential problems. The rule is intended...

dennis_wenk | 04 Oct 2012 | 1 comment

Professor John Graham of Indiana University points out that “large amounts of resources are devoted to slight or speculative dangers while substantial and well-documented dangers remain unaddressed”.  It has been well established that people often too much weight is placed on risks of low probability.  Such is the dilemma of complexity within IT infrastructure.  We often talk about hackers, malware, floods, fires, earthquakes, and tornados; while the real crisis is happening right under our nose and it has well over 5,000 risk signatures.  This crisis is the complexity in the IT infrastructure and it is causing considerable losses for companies.

The likelihood that an organization will experience a catastrophic loss from an IT failure is far greater than any catastrophic disaster or "black swan" event.   IT failures are costing companies trillions of dollars every year; worldwide downtime is estimated at over $35 Billion...

dennis_wenk | 24 Sep 2012 | 0 comments

Operational resilience is the economical balance between an organization’s requirements for service availability and the consequence of an interruption to that service.  The likelihood that your organization will experience a catastrophic loss from a material service interruption caused by an IT operational-problem is far greater than any service interruption being caused by some disaster or ‘black swan’ event.  So if the overarching objective is to protect our organizations from bad events that generate losses then it is time to focus our attention to creating resilient IT operations.   

We live in a technology driven world.  Every possible business processes has been automated; automated to the point where Information Technology is deeply embedded in the operating fabric of our business and the organization is now highly dependent on information technology.  IT has become a microcosm of the organization and it is used to...