What would be the effective results of a security investment for a small business, and how does it compare to larger corporations? Should it include important concepts from governmental and public/private sectors?
Every day, businesses are exposed to a variety of dangers. Some of these dangers range in severity and capacity for harm. The amount of risk that will be accepted depends on or is dictated by the firm’s size. Larger companies, such as multinational firms and institutions, frequently assume more risks than smaller companies. The risk rate frequently impacts the success rate. According to Jeong (2019), it has been established that greater risk is correlated with greater success. Businesses must invest heavily in security since danger is inevitable in corporate endeavors.
Security investment is an effort to streamline and maximize routine security and emergency readiness. Investment in security is more about loss avoidance. An organization’s existence and continued success dangle in the balance when its security is breached. Business security assaults come in a variety of forms. According to Li (2021), more or more severe security breaches have a greater potential to harm a business. The advantage of investing in security is that one can find the dangers and vulnerabilities attacking the company and gather enough data for the security management team to develop mitigation and preventative measures.
The lack of resources that small firms often have compared to larger corporations might make it challenging to engage in security precautions. But, small firms can safeguard themselves by making several efficient security expenditures. Using two-factor authentication and strong passwords for all accounts is the first and most fundamental measure. Small firms should routinely upgrade their software and systems to secure them against known vulnerabilities. Investing in antivirus and anti-malware software is also critical to stop malicious attacks.
Employee security best practice training is another worthwhile security expenditure for small organizations. Employee security practice involves educating students about phishing schemes and other prevalent types of social engineering so they can spot and stay away from them. Small firms should also create clear policies and processes for managing and accessing sensitive data and conduct regular system audits to assure compliance.
Bigger enterprises can invest in more sophisticated security measures since they can access more resources than smaller companies. For instance, major organizations might deploy data encryption, security operations centers, and advanced threat detection systems to safeguard their networks and data. Even major organizations, however, are susceptible to cyber threats. Large organizations have had several high-profile data breaches in recent years, underscoring the necessity of ongoing investment in security measures.
It is crucial to remember that small business security investments should not be restricted to technological ones. To safeguard against insider threats, physical security measures like access limits and secure storage of sensitive data are crucial. Also, small firms must have a plan for handling security breaches, including locating and containing the breach and alerting clients and law authorities as required.
Involvement from the public and private sectors is essential for enhancing small business security measures. Several governmental organizations and business associations have created tools and initiatives in recent years to assist small firms in strengthening their cybersecurity posture. According to Humphreys (2019), for instance, the National Institute of Standards and Technology (NIST) has created a cybersecurity framework that companies of all sizes can utilize, and the Small Business Administration (SBA) offers materials and training on cybersecurity best practices. Private and public-sector cooperation can also be useful in enhancing security precautions for small firms. For instance, industry associations and private businesses can collaborate with government organizations to share threat intelligence and create best practices for cybersecurity. For small firms that invest in security measures, the government may provide incentives or tax advantages in some situations.
Should external stakeholders be involved in the decision-making process of risk management plans? Explain how various decision-makers have different responsibilities and necessities for the inputs and outputs within an organization.
External stakeholders are not part of the company but are nevertheless impacted by its choices and directives. The impacts of corporate operations still affect external stakeholders even when they do not own any shares in the company. They are essential to how businesses run as well. They monitor company operations, support vendors, and set expectations. According to Nweke (2020, May), external stakeholders hold companies responsible for their choices and actions and contribute to developing a safe and fair market. They typically have a significant impact on a company’s long-term success. Customers, government regulators, business associates, creditors, communities, news organizations, trade unions, and celebrities are a few instances of outside stakeholders.
Stakeholders should participate in risk management plan decision-making because of their impact on businesses. Consider government regulatory organizations created to impose laws and rules on specific matters in various industries. The Centers for Disease Control (CDC), Environmental Protection Agency (EPA), and Occupational Safety and Health Administration are a few examples of these organizations (OSHA). Considering the policies and rules of the government’s designated regulatory agencies will help ensure that an organization makes every effort to adhere to these rules when developing risk management plans.
The entire point of risk management is to ensure that a company does everything it can to prevent risks that could be harmful to its survival and success. Risk prevention entails using proper tactics and establishing and upholding sensible company regulations. According to Settembre-Blundo (2021), including regulatory agencies in risk management plans can help reduce or eliminate the chances of breaking their laws and regulations. Participating in behaviors or actions that are at odds with the ideals of government regulators can be fatal for an enterprise.
Customers are another primary stakeholder of business organizations that should be considered in risk management. Activities of a business usually affect its customers first before any other entity. If an organization satisfies its customers in all areas of customer service, a positive impact is made on them. This positive impact can spur these customers to suggest this organization to their friends and family, which will help boost sales and spread brand awareness. Considering this primary stakeholder’s values, wants, and needs is key to developing a formidable risk management plan.
Decisions about risk management should be based on retaining and satisfying customers. Only risks that won’t compromise an organization’s current customer retention and satisfaction criteria should be accepted. According to Lathrop (2019), if things go wrong when a company takes risks that jeopardize its client satisfaction standards, the consequences could be so catastrophic that the company might not survive. Customers are the lifeblood of any business; they are not merely external stakeholders. It is consequently recommended that a firm consider them if it wants to establish a formidable strategy for risk management.
Another significant external stakeholder that needs to be considered in the risk management decision-making process is business partners. Business partners are crucial external stakeholders since they frequently rely on one another to function. Another strategy to strengthen the current cooperation is to include business partners and ensure their interests are considered during risk management decision-making. Every stakeholder—from clients to regulators in the government to business partners—is essential to the survival and success of a firm. According to Lathrop (2019), a business’s long-term success and survival is other major risk management goal. So, it is only fair that these stakeholders participate in the risk management decision-making process, given that they both exist and significantly impact an establishment’s success.
Those in an organization tasked with making strategic decisions, carrying out policies, and upholding organizational integrity are known as decision-makers. These choices may involve acquisitions, growth, or investments. These decision-makers have a responsibility to make well-informed decisions in light of a variety of factors, such as time restrictions, resources available, the quantity and quality of information accessible, as well as the variety of parties involved. The Chief Executive Officer (CEO) is the ultimate decision-maker in an organization. Still, since he cannot make every choice alone, other people are hired to assist in decision-making. The general objective of decision-makers is to support their organization in developing strong business and sales strategies, building marketing and promotional capacities, and implementing regulations to guarantee the business remains successful, and people are treated with respect.
Three main categories of decision-makers exist. The first is the decision-maker who is brand-focused. This person is concerned with making choices regarding an organization’s brand and potential improvements. They place a lot of emphasis on raising awareness and enhancing their image. These decision-makers are acutely aware of how the company’s activities and choices affect its clients and how they view the brand. One of the most important roles in an organization is the brand-centric decision-maker.
The Multi-Focal decision-makers play different decision-making roles. As their name suggests, these people have a variety of business-related decisions to make with the sole objective of making the organization successful. They create and test fresh tactics to boost commercial productivity while protecting the brand’s reputation.
The Aggregators are the final set of decision-makers. They are the fighters for acquisitions and proponents of financial growth. Profit-making is given more consideration than other facets of the company. Their judgments frequently center on developing plans to increase revenue for the business. They may need to speak with analysts and investors to make wise decisions. The effectiveness of an organization as a whole depends on all three categories of decision-makers. They act as the organizations’ gatekeepers, initiators, and decision-makers, ensuring the company maintains a positive public image, a content workforce, and successful operations.
What are some key roles and responsibilities of government, industry, academia, and other non-governmental organizations concerning critical infrastructure risk?
A nation’s existence, economic stability, and security are supported by its critical infrastructure. Certain infrastructures are classified as “essential” because they are so important that their impairment or destruction could have a crippling effect on the nation’s physical or economic security and negatively damage public health. The country’s key infrastructure offers the fundamental services that support American society. To administer particular vital infrastructure sectors, it is the responsibility of the government to set up and support the required authorities. According to Nweke (2020, May), these organizations control risk in their infrastructure industries. For instance, the United States Environmental Protection Agency (EPA) manages the Water and Wastewater Systems Sector. According to Humphreys (2019), the EPA is now tasked with managing any risk associated with this specific industry. Some of these organizations occasionally collaborate to effectively manage the risks confronting their respective sectors because of the interconnectedness of the numerous vital infrastructures.
These governmental organizations have the staff and resources necessary to analyze and execute solutions, identify and quantify risks, and track outcomes. Each vital infrastructure is unique. Thus they all have varied risk tolerance thresholds and occasionally have to deal with dangers of various types and intensities. As a result, these designated government bodies must determine what risks are acceptable to each vital infrastructure and how they might be controlled not to endanger their respective sectors’ fundamental functions.
The industry is responsible for integrating and sustaining valuable resources to ensure that infrastructure matches the current needs of its target market. It must also improve and preserve existing resources to ensure their long-term viability. The industry is primarily there for survival. Additionally, they collaborate closely with academics to research how to recognize better, control and reduce hazards affecting current vital infrastructures. In all essential infrastructures, non-governmental groups make up most of the actors. According to Lathrop (2019), every sector is dominated by these sole proprietorships and private partnerships. Therefore actions and decisions taken in these sectors have an impact on them. As a result, they also owe it to the government organizations in charge of each sector to follow laws and regulations, combine efforts to upgrade each crucial infrastructure, and generally promote a positive working environment.
The existence, improvement, and maintenance of our various critical infrastructures depend on the agencies tasked with looking after them, the industry providing essential resources, academics assisting us in better understanding every sector, and non-governmental organizations pumping money into their success. Critical infrastructure sectors run a very high risk of taking risks that could ultimately result in their demise without these important stakeholders and their responsibilities/contributions.
References
Humphreys, B. E. (2019). Critical infrastructure: emerging trends and policy considerations for congress. R45809. Congressional Research Service, Washington, DC.
Jeong, C. Y., Lee, S. Y. T., & Lim, J. H. (2019). Information security breaches and IT security investments: Impacts on competitors. Information & Management, 56(5), 681-695.
Lathrop, B. (2019). The Inadequacies of the Cybersecurity Information Sharing Act of 2015 in the Age of Artificial Intelligence. Hastings LJ, 71, 501.
Li, H., Yoo, S., & Kettinger, W. J. (2021). The roles of IT strategies and security investments in reducing organizational security breaches. Journal of Management Information Systems, 38(1), 222-245.
Nweke, L. O., & Wolthusen, S. (2020, May). Legal issues related to cyber threat information sharing among private entities for critical infrastructure protection. In 2020 12th International Conference on Cyber Conflict (CyCon) (Vol. 1300, pp. 63-78). IEEE.
Settembre-Blundo, D., González-Sánchez, R., Medina-Salgado, S., & García-Muiña, F. E. (2021). Flexibility and resilience in corporate decision making: a new sustainability- based risk management system in uncertain times. Global Journal of Flexible Systems Management, 22(Suppl 2), 107-132.
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