Identify And Discuss Technological And Financial Risks

Identify and discuss technological and financial risks that Company M faces

Company M Designs, manufactures, and sells electronic door locks for commercial buildings, operating across three locations in the United States with approximately 1,500 employees and generating $50 million in annual revenue. The company’s reliance on digital infrastructure and internet-based systems exposes it to various technological and financial risks. Technological risks include cyber-attacks such as malware infections, data breaches, and network vulnerabilities, which can disrupt operations and compromise sensitive information. Financial risks stem from these technological vulnerabilities, manifesting as direct costs related to incident response, data restoration, and system downtime, as well as indirect costs such as reputational damage and loss of customer confidence. The recent incidents at Company M—22 security breaches mainly involving stolen devices and four malware events—highlight these risks, emphasizing the need for robust cybersecurity measures to prevent financial losses and operational disruption.

Involved IT Infrastructure Domains During the Malware Events

The malware incidents at Company M involved multiple domains within its IT infrastructure. First, the server domain was compromised through an unpatched security vulnerability, leading to infection and data loss. Second, the wireless network domain in the manufacturing plant was insecure, providing an attack vector for malware infiltration. Third, the remote access infrastructure used by the sales team was insecure, exposing remote connections to potential exploitation. Fourth, individual workstations, such as the headquarters employee’s PC, were compromised through malware download from the internet. These incidents showcase vulnerabilities across critical infrastructure domains: network security (wireless and remote access), server security (patch management), and endpoint security (employee devices). Addressing vulnerabilities across these domains is crucial for reducing the risk of future malware infections and safeguarding operational continuity.

Security Policies for Risk Mitigation

To mitigate the identified risks, Company M must develop and enforce comprehensive security policies. First, implementing strict device management policies—including encryption, asset tracking, and remote wipe capabilities—will help prevent data loss from stolen or misplaced devices. Second, establishing patch management procedures ensures all systems, especially servers and network devices, are promptly updated to mitigate known vulnerabilities. Third, enforcing secure wireless network protocols, such as WPA3 with strong encryption, reduces the risk of unauthorized access. Fourth, strengthening remote access controls through multi-factor authentication (MFA) and Virtual Private Networks (VPNs) improves security for remote employees. Additionally, defining clear guidelines for software downloads, including restrictions on unauthorized internet activity, minimizes the risk of malware introduction through user actions. Moreover, conducting regular security training raises employee awareness, reducing the likelihood of accidental breaches. Developing incident response plans and continuous monitoring further enhances resilience, enabling quick detection and containment of threats.

Conclusion

Company M faces substantial technological and financial risks stemming from vulnerabilities in its IT infrastructure, as evidenced by recent malware incidents and device losses. Addressing these risks necessitates a multi-layered security strategy encompassing policies for device management, system updates, network security, remote access, and employee training. By establishing robust security policies and practices, the company can safeguard its assets, ensure operational continuity, and protect customer trust and financial stability in an increasingly threat-prone digital landscape.

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