Why Companies Spend More Money Essay

According to Olavsrud, "Cybercrime, along with the increase in online causes (hacktivism), the increase in cost of compliance to deal with the uptick in regulatory requirements coupled with the relentless advances in technology against a backdrop of under investment in security departments, can all combine to cause the perfect threat storm. Organizations that identify what the business relies on most will be well placed to quantify the business case to invest in resilience, therefore minimizing the impact of the unforeseen." (Olavsrud, 2014)

Now a day, companies are focusing and investing more on IT security, where the company’s and customers’ personal and financial information managing and storing. Certainly, more cost involves in this process. Companies who failed in security breach prevention paid and paying huge amount. Example for this is Target. This multinational grocery stores company’s data breached in 2013 this affecting its business. Furthermore, by 2015 nearly 1000 Target employees lost their jobs and the company is facing legal suits from bankers and customers.

Because technology is consistently growing and changing, preventative measures must include flexibility to allow for change and growth. Without these considerations, a business could jeopardize themselves by restricting the ability to expand or even update the systems with necessary security patches. Preventative measures should include future growth. As technology grows, risks increase. Protection mechanisms will change as new threats are introduced to business as well as new legislations. Many security standards are based on data protection regulations and as laws change or new laws are introduced, information technology is the most costly element in ensuring compliance. There could be costly ramifications with poor planning.

Furthermore, the gathering of intelligence can be easily and anonymously gained from publicly available information. The advent of the internet has allowed for the transfer of information in a far more accessible manner. The following literature review hopes to support the hypothesis that the loss of proprietary intellectual information is far more vulnerable now, more than any other time in history, and therefore poses a far greater risk to institutions than from spying in the traditional sense of the word. Johnson, as cited by Bressler (2015), states that espionage information can be found in 90-95 percent of public domain information. Most completive intelligence collection efforts occur through the access of publicly available information; offered up by the very companies being targeted. In particular, corporations provide tremendous amounts of valuable data from their websites, press releases and social media. Oftentimes, companies employee analyst who peruse thought company websites and social media accounts in an effort to forecast company direction and the types of jobs being filled. Bressler (2015) states that U.S. companies spend over a million dollars per year in developing and collecting competitive intelligence. What once required the talents of

The economics of the business for the recession has created a new segment of cash-strapped individuals, looking for inexpensive new ways to decorate certain things. Vinyl was among the biggest gainers from 2008 to 2009. Purchases of vinyl instructions and supplies continue to increase in the market place. During this economic down turn businesses are still surviving. Many companies are seeing the movement as a way to cut costs and improve their reputation. Businesses are using the movement to improve operations, foster innovation, engage employees and satisfy customers. Online shopping is also becoming increasingly popular during the recession because consumers can research products in advance and find what

The criticality principle defines the impact of loss in terms of dollars and it entails the direct and indirect costs. If a company executive uses the cost benefit analysis approach to justify the investment in security, it is likely that the cost of security will be greater than the benefit of protection against potential risk. Most company executive fail to take into consideration the overall costs involved in a security breach. Using the criticality principle, other costs such as replacement, including the temporary replacement costs, must be accounted for. Downtime is the cost of the inability to function as a result of the loss. Insurance costs are also likely to go higher if the loses are on the rise. The loss of the position of the company in the marketplace is very difficult to regain once it has been lost. This is due to the failure to deliver the demanded product to the consumers, who is likely to look for an alternative. These are some of the important factors that highlight the importance of security in the reduction of costs that are incurred as a result of loss. It is possible to merit and quantify security risks using data obtained from the criticality and probability principles and the creation of a vulnerability matrix (Robert and Gion 1998).

Canadian companies are adopting a “wait and see” attitude despite being affirmed that the cost of a cyberattack can be expensive, is because they are uncertain of what the cyberattack will do to them and the outcome of where the solutions that they've come up with to fix it will lead them to. They are afraid that if they make the wrong choices in repairing the damages done to the company from the cyberattack, the expenses for using those solutions will be higher than the initial amount that the cyberattack had caused. Also, Canadian companies think that if they opt for a “wait and see” attitude, it

A single insider could steal secrets from critical infrastructures or leave them vulnerable to a future hack, which could have residual effects for years, such as the company Target and its reputation after the company was hacked. Further, insiders like Edward Snowden have set back American national security for years to come, by exposing secret security practices to the world. The government proposed in S.3414, to conduct background checks, focus on employee training, and assure that the necessary management are enlisted. These steps might stop the insider threat, but are measures to help reduce the threat. The benefits would also lead to better productivity and ensure the right employees are emplace to meet the industry standards and comply with policy. A new proposed bill should incorporate this feature within the government and be an option within privately owned critical infrastructures with incentives if guidance is

It is not uncommon to become accustomed to the way business is conducted in the United States. It’s a fair assumption that many young, inexperienced business executives are unaware of international cultures in business. Each country has particular customs and practices. It certainly goes without saying that Corporate America has an understanding when it comes to the terms of a standard workweek.

Do you see the problem? Millions of dollars spent on background checking employees, compartmentalizing information through security clearances, physical and technological safeguards,

Espionage has been a part of America since its earliest days. Today it is not surprising to hear of newer forms of spying like a cyber-attack on a federal agency or intrusions into nuclear power plants that could potentially cause grave damage. One current example of an espionage event officially named by the FBI as Operation Ghost Stories occurred around the 2010-time frame. The FBI ran an investigation of at least ten Russian spies that had embedded themselves in communities, universities, and jobs without anyone suspecting (FBI). These deep-cover spies used stolen identities to obtain a front of being “normal” Americans that to all but knew their true identities. They assimilated into the fabric of our country, and their intent was to gather intelligence and to strike at a strategic time that could occur years down the road. It is not wonder that organizations are concerned when they have so much riding on keeping their networks secure. One method that companies have used to keep their secrets more secure is by using an intranet.

It usually comes from a good theory. Managers usually do not heed attention to theories because it is

While all of these technologies have enabled exciting changes and opportunities for businesses, they have also created a unique set of challenges for business managers. Chief among all concerns about technology is the issue of information security. It seems to be almost a weekly occurrence to see a news article about yet another breach of security and loss of sensitive data. Many people will remember high profile data breaches from companies such as T.J Maxx, Boston Market, Sports Authority, and OfficeMax. In the case of T.J. Maxx, a data breach resulted in the loss of more than 45 million credit and debit card numbers. In many of these incidents, the root cause is a lack of adequate security practices within the company. The same technologies that enable managers can also be used against them. Because of this, businesses must take appropriate steps to ensure their data remains secure and their communications remain

Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local

Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals with the separation of ownership and control of an organisation within a financial context. The financial manager can raise long-term funds internally, from the company’s cash flow, or externally, via the capital market, the market for funds