Answer:
The major challenges with the current information systems budgeting and prioritisation process are:
- The focus was overly on how the budgeted monies will be spent and how much return it will bring to the business. Not much thought was given to how the monies required for the expenses will be generated. Budgeting not only looks at the outflow, it examines existing and potential sources of income/revenue. When this is balanced, the company can integrate such into their marketing strategy armed with what information about the market that they possess.
- The prioritization is all wrong. Budgeting is because there is are organisational objectives to be met with limited resources.
Because those resources are limited, the said objectives have to be prioritized. Income-generating projects must hold more priority over non-revenue generating activities.
If there is a strategic link between the company's Information Systems upgrade and an increase in its bottom line, then it must be given priority.
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The risk management principle involved in this is decision making.
<u>Explanation:</u>
The processes and the activities that we perform have some risks involved in them. The intensity of risk might differ from one task to the other task. So the risk involved in these tasks and the activities must be managed properly so that the target can be achieved properly.
These are some principles involved in the management of the risk. The principle involved in the task given in the question is that of making a decision which serves the purpose best and helps you to achieve your target. The decision made to cross the river via the bridge is taken after keeping into mind a lot of factors and the decision taken should minimize the risks. Thus it is the principle of the decision making.