CIS RISK MANAGEMENT & STRATEGIC PLANNING CMGT/585
June 12, 2006
Many organizations perform risk assessments to measure the amount of risks that could impact their organization, and identify ways in treating them before a major disaster occurs. Risks involve theoretical effectiveness of security measures, loss of impact, threats and vulnerabilities that are common in today's society. FedEx Corporation follows guidelines and policies that are governed by processes by which the company assesses and manages its exposure to risk. The company's major financial risk exposures and the steps management has taken to monitor and control such exposures (FedEx …show more content…
The risk of a fire and explosion at FedEx would be devastating, and the result could cause the company to lose a lot of its facilities as well as lost of life.
According to (FedEx, Infosec, 2006), most risks faced by FedEx in the past are related to non-catastrophic events. These risks make up about 60% of the company operations and could leave the company in limbo if a major disaster strikes. They are hardware/software failure and network or utilities (power, telecom). The failure of hardware and software within the company's major network could bring the company to a halt, because most of the operations include airline flights are controlled by the computer systems. If a major problem was found related to hardware or software within the company's routing system, airplanes will not be able to fly. This would be a serious impact to the organization and the routing of packages and other services will have to solely rely on the ground transportation fleet.
FedEx could suffer billions of dollars in lost if any of its major networks was brought down due to potential risks and uncertainties caused by disasters. Federal Express may have the most efficient information networks in the world (Sass, 2000). There are about eight different companies that provide services such as supply chain, business and transportation, and information services. A disruption to the network