Cybersecurity for Leaders and Managers

 Cybersecurity for Leaders and Managers

Data Breach Incident Analysis and Report

The introduction provides an outline of the situation, which involves cyber insurance business audit results indicating that the firm lacks the preparedness to assist it in responding to data theft that it may meet. The introduction is then aimed at the top management, who elaborates on cyber insurance’s precise meaning and substance. Cyber insurance refers to hedging in insurance companies to assist businesses against risky actions and consequences. A form of the devastating effects of cybercrimes including ransomware, Malware, and other attacks (Kshetri, 2020). Cyber insurance also covers the various methods to compromise the various organizational networks and critical data. Cyber insurance, often known as cybersecurity insurance, provides particular solutions to manage cyber-related risks. The organization pays the insurance firm once a month or once a year to assist the organization in protecting itself against breaches and cybersecurity-related threats.

Cyber insurance plans have a specific or general scope on the cyber-related risks. The cyber insurance policy usually covers the costs of responding to data breaches through forensic audits, credit monitoring for those impacted, and legal fees. A company uninformed of the benefits of cyber security insurance is more likely to forego it, leaving them vulnerable to significant cybercrime-related calamities. If such businesses’ data is breached, they will face substantial financial losses and the loss of crucial data and financial records (Kshetri, 2020). According to cyber insurance research, it was observed that data breaches elicit an unexpected reaction from the company’s consumers, who are concerned about the protection of their data and other vital information.

According to the audit, the firms’ clients also lacked a well-prepared incident response strategy, realistic and functioning cybersecurity protection measures, and sufficient knowledge of the likelihood of a cyber-attack resulting in the theft of critical data kept on the network. Cyber insurance help prevents companies from getting victimized by cybercrimes through proper management of the risks and guarantees recovery when cyberattacks occur. The audits show the cyber insurance’s most significant contribution to the firm. Customers lose trust, firms suffer negative reputations, and some enterprises fail due to data breaches. Cyber insurance protects the company against such risks, which helps to reduce such accidents.

Analysis

The section goes through the precise types of data implicated in the Starwood Hotels data breaches and the consequences for the firm. The part also includes the findings of government authorities on the main actions that Starwood Hotels should take to safeguard the organization against a hack (Cybersecurity and GDPR: Two Record fines in the United Kingdom, 2020). In addition, the section covers the authorities’ conclusions on Marriott International’s culpability and sanctions.

Clients’ names, addresses, passport identifications, and credit card information belonging to Starwood Hotels customers were among the data taken in the Starwood Hotels data breach (Cybersecurity and GDPR: Two Record fines in the United Kingdom, 2020). As a result of data theft, some hazards exist, such as identity theft, data fraud, and related financial threats.

According to federal authorities and the court, Marriott International should have put several protections to guarantee the client’s data security, which would have averted the cyberattack. As a result, the government and the court hold Marriott liable for the consequences of a data breach (HTTPS://www.insurancejournal.com/news/national/2018/12/03/510811.htm, n.d.). In addition, the company must be held responsible for the risks and other harms the breach may cause to customers. Following the investigation, government officials and the court assessed the penalty based on the company’s failure to adopt safeguards, and a $123 million charge against the Marriott International Hotel was appropriate.

Review of the best practices.

Padgett-Beale can use the ideas in this section to develop a data breach response strategy and plan. Based on the privacy breaching occurrence analysis, the primary recommendations for Padgett-data Beale’s breach response approach are the following. The first area where guidance is given is to the people. In the event of an incident, a response team is required. The incident response team (IRT) is made up of people who are the first to notice and respond to a cyber-related occurrence, and they are in charge of directing a comprehensive response and ensuring that the problem is resolved appropriately. In addition, the incident response team can use it to plan the response, keep acceptable communication mechanisms in place, and engage with software and hardware makers (Mu & Zheng, 2019). As a result, forming a team of five individuals to handle threat detection is an excellent idea. The incident response team should represent law, compliance and standards, sales and marketing, and management.

Processes recommendations to discover the primary source of the cyber problem, incident investigations must be done. This method is utilized to determine what created the situation in the first place. Risk control and hedging solutions are also discovered throughout this procedure. The incident response team is leading the investigation. Several response procedures to control the situation are implemented following rigorous studies.

Cybersecurity policies that aid in observing and detecting data breaches are advantageous. As a result of the method, all participants in the firm receive prompt information about the violating incident. Furthermore, a worker who encounters a data breach should alert senior management or IT professionals for corrective action or subsequent action.

Summary

In the next part, Padgett-Beale International presents an insight into the issues and implements recommendations. But, first, the organization’s norms, policies, and technology must all be altered.

Implementing a CRM system to aid in creating and tracking the managers’ and sales executives’ various operations is advantageous to the firm. Padgett-a large number of Beale’s clients and potential customers demand an efficient and effective system, such as CRM (Suoniemi et al., 2021). It allows them to keep track of the most profitable deals and focus their efforts on areas where clients are more satisfied.

A VMS system for tracking the performance of Padgett-Beales’ vendors and future vendors interested in the company is beneficial for easy management. This will be extremely important to control as they keep track of the company’s new vendors. Furthermore, this serves as a foundation for assessing vendors’ capabilities within the organization. Management can predict the likelihood of a supply issue by examining the vendor’s capabilities and performance, which helps them avoid negative consequences.

To better handle the diversity of Padgett products Beale’s and potential products introduced to the line of business, the company needs to implement an ERP system. ERP will give the organization a better understanding of the entire production process and how the product goes to market. To better understand each production stage, the company has to plan new product releases with more precision. Additionally, as the workflow becomes more transparent, any potential hazards are immediately identified and avoided.

References

Cybersecurity and GDPR: Two record fines in the United Kingdom. (2020, March 12). Lexing Network Réseau international des avocats spécialisés en droit des technologies avancées / Global network of attorneys specialized in emerging technology law. https://lexing.network/cybersecurity-and-gdpr-two-record-fines-in-the-united-kingdom/

HTTPS://www.insurancejournal.com/news/national/2018/12/03/510811.htm - Search. (n.d.). Bing. https://www.bing.com/search?

Kshetri, N. (2020). The evolution of cyber-insurance industry and market: An institutional analysis. Telecommunications policy, 44(8), 102007.

Mu, B., & Zheng, J. (2019, June). Study on Incident Response System of Automotive Cybersecurity. In Security and Privacy in New Computing Environments: Second EAI International Conference, SPNCE 2019, Tianjin, China, April 13–14, 2019, Proceedings (Vol. 284, p. 198). Springer.

Suoniemi, S., Terho, H., Zablah, A., Olkkonen, R., & Straub, D. W. (2021). The impact of firm-level and project-level capabilities on CRM system quality and organizational productivity. Journal of Business Research, 127, 108-122.