Understanding IT Risk Management: Decisions, Responsibilities, and Acceptance Key Elements

Information Technology risk management is part of the decision-making process and the most important component of managing organizations effectively. UA Little Rock identifies, assesses, and manages risks effectively to achieve university objectives while maintaining resilience and trust.

Any software or hardware purchase goes through the risk assessment process. After the assessment, four decisions can be made:  

• Risk Avoidance: Find another solution or do not use the hardware/software.
• Risk Reduction: Implement additional controls to reduce the probability and/or impact of the risk.
• Risk Transfer: Use insurance or outsourcing to transfer the risk.
• Risk Accept: Accept the risk and all its consequences

Accepting a risk means the organization has made a conscious decision to tolerate the potential consequences of a specific risk. However, acceptance is not a passive act—it comes with responsibilities and accountabilities.

When a risk is accepted:

• Designated decision-makers or hardware/software requesters (i.e. ‘risk owners’), must formally approve the acceptance, often documented through risk registers or governance reports.
• The risk owner must ensure the risk is continuously monitored, documented, and re-evaluated over time.
• The organization must be ready to bear the consequences if the risk materializes, including financial loss, reputational damage, legal exposure, or operational disruption.
• Accountability lies with the individual or body that accepted the risk—meaning they must be prepared to explain or justify the decision during audits, investigations, or reviews.

Accepting a risk does not mean ignoring it—it means owning the outcome.

Risk management is about informed choice. While not all risks can be eliminated, they can be managed effectively through sound judgment, appropriate governance, and strategic alignment. Accepting a risk is a valid and sometimes necessary decision—but it must be intentional, transparent, and backed by accountability.