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Chapter 4 ■ Service Strategy Risks are inherent in every business, including the business of providing IT services. The world’s most popular entrepreneurs wouldn’t have reached peaking heights if they hadn’t taken risks at various instances. An IT service provider has to take risks in order to come out on top. When a service is conceived, it comes inherent with risks. They cannot be avoided. The smart thing would be to identify and manage them. It is like harnessing the sun’s rays for power generation rather than staying indoors during the day. A risk is a possible event that could cause harm or loss or affect the ability to achieve objectives. There are two parts to risks: 1. The first is being pro-active and assessing risk. Based on the assessments, mitigation activities are planned and implemented. 2. No matter how pro-active an organization is, it may not be able to avoid the risk triggers (e.g., economic recessions). For such instances, risks need to be managed when they materialize. 4.6.1 Risk Assessment Planning plays a major role in ITIL and it involves assessing risks before they materialize. It is an exercise that needs to be done at various stages of the service lifecycle. In most organizations, there are separate risk management teams that think of the worst possible thing that can happen to an IT service and start mapping it out with the impacts and the possible mitigations that can be achieved. Who said there is no place for pessimists in ITIL? Under assessment of risks, there are two major activities: 1. Risk identification 2. Risk analysis 4.6.1.1 Risk Identification Risks have to be identified before they happen. The best way to do this is by having brainstorming sessions with all stakeholders. When you brainstorm risks, just start listing them out. It could be as silly as the janitor tripping over power cables in the datacenter. Well, it’s not silly really, as there have been instances of it that have been widely case studied. After identifying the risks, add a column for identifying the possible impact coming from the risk. For the janitor tripping over power cables, the impact is not primarily servers shutting down, but the impact that the customer faces, say web sites going offline or business applications losing connection to databases. The placeholder for this information is a risk register. It is a fancy name for the spreadsheet or Word document where all the identified risks are recorded. 52
4.6.1.2 Risk Analysis Chapter 4 ■ Service Strategy After you think you have identified all the risks (which is impossible), add another column next to the risk to identify the probability that the risk could materialize: • Datacenter losing power during janitorial activities: Low • End users losing connectivity to business applications: Medium • Employees taking sick leave in December: High Also, you would expound on the potential impact that you identified in the previous activity—risk identification. There are two ways to analyze an impact: quantitative and qualitative. In one column, you could quantify the impact by providing numbers for the impact, such as 100 users impacted and losses amount to $10,000. In the next column, you can describe the impact in words, the things that cannot be quantified. Such as the company losing the brand image and facing legal action from customers. The next item on the agenda to analyze is the mitigation actions. For every identified risk, you need to come up with a plan to mitigate it. Remember that you cannot avoid all risks, so you need a concrete plan to handle them when risk events are realized. 4.6.2 Risk Management Risk management is twofold: pro-active and reactive, with the emphasis being on being pro-active. Reactive risk management is straightforward. You have a risk register that lists all the risks against the mitigation actions. When it happens, whoever is in charge needs to take mitigation action and see it through the day. Nothing fancy about it, but it’s a necessity. Pro-active risks can be managed by reviewing the risk register regularly. Basically in this activity, smart people in the room look at every risk and the probability of it happening and review if it is still the case. If the probability has changed, the risk register is updated. It is possible that the janitor tripping over the power line is no longer a risk one year after it was recorded, as janitors are no longer allowed to enter datacenters. Perhaps air quality issues where resolved because there is a new technology in place that automatically sucks all the dust through its ducts, and the air conditioning comes with improved air purifying filters that ensure 99.99% dust-free air. Risk management overall is an interesting activity. Although you play the devil’s advocate, it helps you understand the stability of the service and keeps you better prepared for the worst to come. As the adage goes, expect the best and plan for the worst. 4.7 Governance Governance is a way of organizing, amplifying, and constraining power. —Rebecca MacKinnon 53
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Become ITIL Foundation Certified in
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Contents at a Glance About the Auth
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■ Contents 1.8 Internal and Exter
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■ Contents ■Chapter ■ 4: Serv
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■ Contents 6.4 Service Transition
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■ Contents ■Chapter ■ 9: ITIL
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About the Technical Reviewer Sumit
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6.4.1.7.7 Review and Change Closure
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Chapter 9 ■ ITIL Foundation Exam
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Index A Access management and info
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■ INDEX definition, 108 objective
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■ INDEX J JAVA team, 190 K Key
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■ INDEX Service catalog managemen
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■ INDEX OR gate, 19 parts, 20 per
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