This assignment discusses the problems faced by organizations in their operational level, specifically focusing on cyber security threats. It provides solutions to combat these threats and protect data.
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Running head: MANAGERIAL DECISION MAKING MANAGERIAL DECISION MAKING Name of Student Name of University Author’s Note
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1MANAGERIAL DECISION MAKING Executive summary Organization faces various problems in numerous fields especially in their operational level. The problems that are faced by the organizations in their operation level include managing overheads, monitoring performances of employees, listening to the feedbacks received from employees as well as customers and many more. For combating the sophisticated cyber attacks that had taken place in Yahoo and meet their needs, they would need a multilayered approach to the prevention of threat. The solution would help in detecting as well as preventing the vulnerabilities and advanced threats with the help of various mechanisms.
2MANAGERIAL DECISION MAKING Table of Contents Introduction..........................................................................................................................3 Discussion............................................................................................................................3 Problem background........................................................................................................3 Problem definition...........................................................................................................4 Solution generation..........................................................................................................5 Solution evaluation..........................................................................................................6 Implementation and action plan.......................................................................................7 Conclusion...........................................................................................................................8 References............................................................................................................................9
3MANAGERIAL DECISION MAKING Introduction Every organization faces numerous problems in various fields especially in their operational level. The problems that are faced by the organizations in their operation level include managing overheads, monitoring performances of employees, listening to the feedbacks received from employees as well as customers, responding to the competition going on in the market, compliance and regulation, uncertainty of various activities, cyber risks faced by the organization, finding out the appropriate group of staffs, retaining customers, cash flow and many more. This assignment discusses regarding a particular risk faced by the operational team of the organizations, the attack chosen for this assignment includes cyber risks faced by the organization. Rather than just an IT issue, cyber security has been increasingly a major risk for most of the businesses (Bazerman & Moore, 2013). In case an organization’s cyber security is not well managed, businesses expose themselves to a great extent and the number of threats also increase which might result in hacks, data theft and many other attacks. Discussion Problem background Cyber security threat is one of the major threats faced by the organizations nowadays. Organizations might face numerous ways of cyber security threats. Data breaches might prove to be very dangerous for any organization (Wood, Cogin & Beckmann, 2009). Cyber security breach might be caused by various ways; these include hacking or computer intrusion, insider threat, data that is on the move, theft caused physically, errors caused by employees through negligence, data lost or improper disposal of data, internet exposure, accidental web and unauthorized access. These ways of data breaches can cause by several sources, they might be external or internal sources. A specific organization that has been chosen for this assignment is Yahoo (Butler, O'Broin & Lee, 2016). Yahoo had faced a serious cyber security threat in the year of 2013-2014. This threat had affected accounts of around 3 billion users.
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4MANAGERIAL DECISION MAKING In the month of September, the most dominant giant of internet during its negotiations on selling to Verizon announced that it had faced one of the biggest data breach in the entire history. This attack was likely done by a specific state sponsor actor in the year of 2014. The attack had resulted in compromising a huge number of real names, dates of birth, phone numbers and email addresses of around 500 million users (Klein, 2016). The company had a vast majority of various passwords that had been involved were hashed by the usage of robust bcrypt algorithm. Few months later, in the month of December, the company had buried the previous record with the disclosure of the fact that a breach that took place in 2013 by some other group of cyber hackers had stolen data from accounts of around 1 billion users (Wolf, Weißenberger & Claus Wehner, 2015). Along with the compromise of email addresses, passwords, dates of birth and names which were not properly secured, the security questions as well as answers had also been compromised. In the month of October, yahoo had revised that around 3 billion user accounts were compromised. The breach had knocked an estimate of $ 350 million of sale price of Yahoo. Verizon had eventually paid around $4.48 billion for the business of Yahoo. The agreement had called for two organizations for sharing their legal liabilities and regulatory from the breach that had taken place (Abatecola, Caputo & Cristofaro, 2018). The sale had not included a specific reported investment in the Group of Alibaba which had revenue of $41.3 billion as well as a particular ownership interest in the organization venue of $41.3 billion as well as a particular ownership interest in the organization of Yahoo of revenue $9.3 billion. Problem definition Yahoo had claimed that minimum of 500 million accounts of users had been hacked by the data breach caused. According to a specific report created by Infoarmor Yahoo had compromised in the year of 2014 by a specific group of black hats who were very professional in their activities. These professionals were hired in order to compromise the database of customers from a huge variety of various organizations(Hoefer & Green, 2016). Some of the targets were linked with the large scale of data breaches of the networks of social media as well as online services like MySpace, LinkedIn and Tumbler. Some more well known organizations were also impacted by the activities of this specific group. In this case the data that had been stolen from
5MANAGERIAL DECISION MAKING them was not at validation or sale in the underground. On the 15thof March in the year 2017, U.S Justice Department had unsealed the indictments against the men who were blamed of the crime of hacking into the account of around half billion users (Jarmolowicz, Reed & DiGennaro, 2016). Among the accused, two of them worked for a specific unit of Russian Federal Security Service which serves as the point of FBI in Moscow on the cases of cyber crime. In case of the data breach that had occurred in 2014, some of the experts in the field of security had noted that most of the passwords of Yahoo used the algorithm of bcrypt hashing. This algorithm is considered as very difficult to track. Rest of them used the algorithm of MD5 that can be broken very quickly (Hasan, Noor & Malik, 2018). This data especially the security questions as well as answers might help hackers get access to the other online accounts owned by the victims. This means that the hackers got access of not only the email accounts of the victims but also the person al social media accounts owned by them. Solution generation In order to combat the sophisticated cyber attacks that had taken place in Yahoo and meet their needs, they would need a multilayered approach to the prevention of threat. The solution would help in detecting as well as preventing the vulnerabilities and advanced threats with the help of various mechanisms (Huang & Tsai, 2015). Various ways by which Yahoo can prevent the cyber security hacks and protect their data are as follows Firewall:next generation firewall should be implemented, it would provide a high quality of performance, complete visibility and an approach of multilayered security, these are provided across the entire organization (Koch, D'mello & Sackett, 2015). The next generation firewall implemented in Yahoo would help it to adapt as various new threats come up, it then extends its protecting power in order to prevent a single point introducing the vulnerability in the specific network. IPS:next generation Intrusion prevention system (NGIPS) can also be implemented which would help the organization to detect as well as stop various unknown threats that have high chances to pose significant risks to the network of the organization. It would enable the clients to move deep inside in the form of a
6MANAGERIAL DECISION MAKING different layer for preventing various threats across the entire lifecycle of attack through the capabilities of remediation. IPS solution would help Yahoo to understand what is actually going on in their organizational environment as well as respond to various incidents very effectively and quickly. Secure Remote Access (VPN):various innovation solutions would allow the organization to access the resources of organizations by using the Secure Remote Access (VPN) solution. It ensures in protecting the sensitive data when it is accessed from the devices outside the network of the organization (Hickson, Butler & Wilson, 2017). With the help of this, clients would be able to customize solution in order to help in meeting the needs of the organizational environment, this helps in benefitting from various features offered by the planned solution. Network Access Control (NAC):various ways of Network Access Control would help the clients to authenticate devices and users in a specific network; it also helps in restricting the availability of resources of that particular network to various endpoint devices which would comply with the help of a security policy. Solution evaluation Solution evaluation can be carried out with the help of SWOT analysis. SWOT analysis acts as an evaluation tool for the security solutions provided above. SWOT analysis is usually designed as a specific strategic planning for providing information to match the resources as well as competencies to the environment where it runs. This analysis is highly adaptive to selection and evaluation of various other alternatives like strategic technology investment (Faisal, Khan & Al-Aboud, 2017). SWOT analysis considers various strengths, weaknesses, opportunities and threats within various options. This involved the identification of external as well as internal factors which are favourable as well as unfavorable for achieving the project’s objectives. Strengths:the strength of the planned solution can be considered as its capabilities which increase their ability to exceed or even to meet their objectives of acquisition (Mitchell, Weaver & Agle, 2016). Some examples would be innovative technology and opportunities provided by the planned solution. Weaknesses:in various cases, weaknesses might be a different side of the strength. Weakness can be described as a certain attribute which might prevent
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7MANAGERIAL DECISION MAKING the acquisition’s achievement (Jiang, Ananthram & Li, 2018). Some examples include unproven technology or a certain limited proven history and start up with the limited financial history. Opportunities:a certain factor that is external in nature and is able to increase or optimize the acquisition’s value, some examples of opportunities include single and secure the mechanism of authentication in all the platforms as well as devices and usage of two-step authentication for preventing various security breaches. Threats:a specific external factor which can decrease their value or decreasing their chance of fulfilling the objectives of acquisition. Some examples of this are meeting the requirements of compliance and untested technology. Implementation and action plan Implementation of the decided solution and its action plan can be divided into various parts. In case these parts are solely followed, the organization would be able to overcome the issues created by the hackers by stealing the data of a huge number of users. The steps are as follows Starting with a master plan:it is completely baseless if an organization spends around $10,000 for protecting an asset worth of $10. Almost every security remediation plan needs the knowledge of the importance of an asset to the organization, this should be realized before money and time is spent in the asset for securing it from attacks (Casali & Day, 2015). Risks must be management intelligently, instead of reactions similar to knee-jerks to the various multitudes of threats. Priorities must be set accordingly in order to understand which the most important asset for the organizations is. If the asset which is not worth much is hacked, it would not be intelligent to spend a lot of money and time in securing it or retain it, hence a good master plan should be planned where it would be decided whether or not to secure and retain the data. Managing access:as far as the security technology has been advanced, passwords can be the weakest link in the chain of security. Passwords can be considered as the easiest way in which hackers would be able to access the data of an organization. According to this, Yahoo must control access to its data. It should
8MANAGERIAL DECISION MAKING hence be decided by Yahoo regarding the visitors that can access the data of the organization(Klein, 2016). The organization can set certain criteria for setting the passwords of the users, these criteria should be set in such a way that they are very tough to crack. Users must not be allowed to put easy passwords like date of birth, name and data that are easy to guess. Conclusion From the above assignment, it can be concluded that the cyber security hack that took place in Yahoo are presently one of the most dangerous and biggest hacks when the number of users affected is considered. The hack represented that various parties like state sponsored hackers might target a single business and most of them succeeded because the organizations did not prepare well for the attack or they did not have sufficient measures to prevent the attacks performed by cyber criminals. the response of these attacks are varying to a great extent along with privacy and various financial organizations come up with different ways through which they can force the companies to protect their information in a proper way. This would help them to protect themselves against the data breaches as vast as this. This assignment discusses regarding the problems faced by Yahoo during the cyber security hack faced by the company. It also provides various solutions that could be applied in order to avoid the hacks.
9MANAGERIAL DECISION MAKING Appendices
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10MANAGERIAL DECISION MAKING Problem Changed inproblemand whattobe achieved Actiontobe taken By whomBy when Data breachDatabreachis occurredwhen hackersattack thedatabaseof theorganization in order to access data. This needs to be mitigated in order to achieve securityofdata thatbelongsto organization. Usageof firewall. Updating procedures Security softwaremustbe up to date. IT professionals Profession al who is expert in mitigatingcyber crimes. Within 2 months Misuseof employee privileges Privileges providedto employeesare oftenmisused andthedatais Privilegesmust be designed such that they do not hamperthe security of data. Employees, IT manager Within 2 weeks
11MANAGERIAL DECISION MAKING leaked,this problem needs to bemitigatedin order to maintain the disciplinein a workplace and secure data from leakage. Employees must be explained regardingthe policies and strict actionscanbe takenifthe policiesare violated. HackingHackingisa problemby whichcyber criminalshacks accounts of users and get access to data. Employeesand other users must besuggestedto createstrong passwordsin their accounts. VPN must beusedinthe systems. IT manager Employees Within 3 weeks Table 1: problems in cyber security (Source: created by author)
12MANAGERIAL DECISION MAKING Diagram 1: fish bone diagram (Source: created by author)
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13MANAGERIAL DECISION MAKING References Abatecola, G., Caputo, A., & Cristofaro, M. (2018). Reviewing cognitive distortions in managerial decision making: Toward an integrative co-evolutionary framework.Journal of Management Development,37(5), 409-424. Bazerman, M. H. & Moore, D. A. (2013).Judgment in Managerial Decision Making(8th ed). Hoboken, NJ: John Wiley & Sons. Butler, M. J., O'Broin, H. L., Lee, N., & Senior, C. (2016). How organizational cognitive neuroscience can deepen understanding of managerial decision‐making: A review of the recent literature and future directions.International Journal of Management Reviews,18(4), 542-559. Casali, G. L., & Day, G. E. (2015). A taxonomic approach to understanding managerial ethical decision-making approaches of clinically and non-clinically trained healthcare managers in Australia.Asia Pacific Journal of Health Management,10(3), SI8. Faisal, S. M., Khan, A. K., & Al-Aboud, O. A. (2017). Study of Managerial Decision Making Linked to Operating and Financial Leverage.Accounting and Finance Research,7(1), 139. Hasan, N. N. B. A., Noor, K. B. M., Malik, A. A., & Ghani, Z. A. (2018). The proposed model of the integration of the principle of maqasid al-shariah in managerial decision making process in shariah-compliant securities.Journal of Islamic,3(11), 36-50. Hickson, D. J., Butler, R. J., & Wilson, D. C. (Eds.). (2017).Revival: The Bradford Studies of Strategic Decision Making (2001). Routledge. Hoefer, R. L., & Green Jr, S. E. (2016). A rhetorical model of institutional decision making: The role of rhetoric in the formation and change of legitimacy judgments.Academy of Management Review,41(1), 130-150. Huang, C. L., & Tsai, J. L. (2015). Managerial Morality and Philanthropic Decision-Making: A Test of an Agency Model.Journal of business ethics,132(4), 795-811.
14MANAGERIAL DECISION MAKING Jarmolowicz, D. P., Reed, D. D., DiGennaro Reed, F. D., & Bickel, W. K. (2016). The behavioral and neuroeconomics of reinforcer pathologies: Implications for managerial and health decision making.Managerial and Decision Economics,37(4-5), 274-293. Jiang, F., Ananthram, S., & Li, J. (2018). Global Mindset and Entry Mode Decisions: Moderating Roles of Managers’ Decision-Making Style and Managerial Experience.Management International Review,58(3), 413-447. Klein, B. D. (2016). Developing an Applied, Integrated MBA Managerial Decision Making Course.Journal of the Midwest Association for Information Systems| Vol,2016(2), 61. Koch, A. J., D'mello, S. D., & Sackett, P. R. (2015). A meta-analysis of gender stereotypes and bias in experimental simulations of employment decision making.Journal of Applied Psychology,100(1), 128. Mitchell, R. K., Weaver, G. R., Agle, B. R., Bailey, A. D., & Carlson, J. (2016). Stakeholder agency and social welfare: Pluralism and decision making in the multi-objective corporation.Academy of Management Review,41(2), 252-275. Wolf, S., Weißenberger, B. E., Claus Wehner, M., & Kabst, R. (2015). Controllers as business partners in managerial decision-making: Attitude, subjective norm, and internal improvements.Journal of Accounting & Organizational Change,11(1), 24-46. Wood, R., Cogin, J. & Beckmann, J. (2009).Managerial Problem Solving: Frameworks, Tools, Techniques. North Ryde: McGrawHill, Australia.