Software Risk Management in Digital Transformation was the focus during the 4th edition of the Information Technology Forum, hosted by International Institute of Research (IIR). Massimo Crubellati, CAST Italy Country Manager, discussed how Digital Transformation processes are changing the ICT scenario and why software risk management and prevention is mandatory.
Massimo shared our recipe for Digital Governance evolution: including a specific ICT Risk chapter in the design of the governance structure of the digital transformation, whose most relevant aspect is to determine which methods and through which key performance indicators to measure the operational risk inherent in the application portfolio. Measurement needs to be continuous and structural, it must include the assessment of application assets inherent weaknesses, through the analysis of correlations between the layers composing them. Thus obtaining, not only an effective prevention of direct damage ensuring the service resilience, but a reduction in maintenance and application management costs.
The event was an interesting opportunity to reflect on the fact that the only road that KPIs can follow is that of standardization in accordance to the CISQ / OMG standard, establishing the standard for measures of operational risks: Reliability, Security and Performance Efficiency. These KPIs need to be measured automatically and unambiguously, independently from the architecture and application structure, thus leading to the effective prevention of incidents, nowadays potentially devastating for completely online business models.
Most of the financial institution attending the event, had been invited to reflect on the fact that, once the decision to convert all of its processes and service model through an agile approach, a phase of risk measurement between the release iterations of services shall be added to their application governance processes, thereby making them able to identify potential software risks even before these turn out to be in production, avoiding both direct damages incurring from emergency operations and the rework costs and ensuring the resilience of the service.
Suggested additional paper: GARTNER-CAST PAPER ON SOFTWARE RISK MANAGEMENT
Erik Oltmans, an Associate Partner from EY, Netherlands, spoke at the Software Intelligence Forum on how the consulting behemoth uses Software Intelligence in its Transaction Advisory services.
Erik describes the changing landscape of M & A. Besides the financial and commercial aspects, PE firms now equally value technical assessments, especially for targets with significant software assets. He goes on to detail how CAST Highlight makes these assessments possible with limited access to the targetâ€™s systems, customized quality metrics, and liability implications of open source components - all three that are critical for an M&A due diligence.