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Analyzing a disaster - Essay Example

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In the business sector risk is usually related with the interests of stakeholders. The appearance of risk cannot be excluded – in fact there is no mechanism or policy that can guarantee the elimination of risk in various social, scientific…
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Download file to see previous pages ress the various aspects of risk; indicatively, risk theorists have referred to risk as an indication of ‘moral hazard or conflict of interest’ (Roy, 2008, 122); from another point of view, emphasis is given on the emergent character of risk (Guerden, 2003, 78) – in terms that if there is no appropriate plan of action the occurrence of a disaster can lead to severe damages. Current paper focuses on the examination of risk management in banks; a specific part of these businesses’ activities is examined – the management of personal data of customers. It is proved that the risk involved in the management of customers’ data in banks can be significant; however, with the implementation of appropriate policies this risk can be limited – the use of risk management cycle for the control of risk involved in the management of personal data of customers in banks has been proved to be the most appropriate solution for addressing the specific problem. Relevant literature is also used in order to highlight the various aspects of risk in the specific sector but also to evaluate the effectiveness of risk management cycle in relation with the specific business sector.
The management of data in banks is a demanding task; the management of personal data of customers – which is the issue under examination – often fails to meet all the standards set by the principles and rules governing the specific sector. The above failure is usually related with the high cost of systems required for the effective administration of the specific business activity; however, if appropriate risk management plans are implemented in advance the risk related with the management of data in banks is minimized. Quite often, personal data of customers are lost during the transactions developed in financial institutions – often the personal data of customers are lost even if no transaction takes place – i.e. while being stored in a bank’s database; therefore, the use of risk management ...Download file to see next pagesRead More
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