The Dangers Of The Global Financial Institutions

1341 Words6 Pages
I. Background of the Problem Much of the today’s research expressly shows that not only the prosperity, but also the entire existence of the global financial institutions is seriously jeopardized nowadays. Thus, in spite of the fact that a great deal of technological advancements has been discovered by the global community, together with the improvements of communication and business operations, this technological revolution brought many challenges simultaneously (Kim 2014). To be more specific, a modern enterprise is surrounded by numerous hazards, which, if properly exploited, may lead to devastating outcomes for a company, especially if the company is involved in the financial segment of the economy. Today’s business practice vividly illustrates that a single leak of information may cause bankruptcy, substantial distrust of customers and even criminal persecution by the government (Chwan, 2013). The greatest hazard today is leak of information. Confidential data may be used for various malevolent purposes, including financial scam, willful destruction of the company’s reputation, unauthorized use of sensitive market and customers’ information by the competitors and other negative scenarios (Rausch, Sheta & Ayesh, 2013). The recent Panama Papers scandal illustrated that when the databases of the financial institution are penetrated by the third party, the results may be catastrophic. Another good illustrations include 2007 hack of the TJX Companies, Inc. (over 95 m user
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