Cybersecurity Risk Management Report: Domino's Pizza Analysis

This report delves into the critical domain of cybersecurity risk management, employing Domino's Pizza as a compelling case study. It begins by highlighting the escalating threat landscape, marked by a surge in cyberattacks and data breaches, and underscores the substantial financial and operation...Read More

CYBER SECURITY OPERATION MANAGEMENT RISK 1
CYBER SECURITY OPERATION MANAGEMENT RISK
Student’s Name
Course
Professor’s Name
University
State
Date

CYBER SECURITY OPERATION MANAGEMENT RISK 2
Cyber Security Operation Management Risk
Abstract
According to studies, cyberspace is significantly influencing significant aspects of
people’s lives. For instance, in the field of education, economy, and health. Recent research
shows that they have been many cases of cyber-attacks, which is causing considerable impacts in
both the private and public sectors. This research will examine Domino’s Pizza company, which
recently had cases of cyber threats.
This report aims at addressing cybersecurity threats and COSO’s risk management
model. Domino’s Pizza is one of the organizations vulnerable to such threats. Thus, with the
implementation of COSO’S ERM model, this organization will become less susceptible to such
cybersecurity threats. Therefore, the model highlights various issues that the organization should
solve and provides clear mitigation procedures on those issues.
Introduction
Recent statistics report that the world’s total cost of a data breach is 43.62 million
(Knowles et al., 2015, PP.52-80). Thus these statistics show a clear picture of what is happening
in the current world of technology. There are a variety of threats leading to immense high
numbers of a data breach. For example, ransomware, data breaches, profile hacking, and denial-
of-service. However, most of these threats target cyber-attacks, fraud incidents, and financial
crime (Thakral, Rakesh & Gupta, 2016, pp.1-6). Consequently, technology is making good
advancement in the field of cybersecurity, risk management, and fraud prevention. However,
research shows that most organizations are Lacking sufficient resources to identify, prioritize,
and assess threats.

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Recent reports from chief information security of Domino’s Pizza show that most
organization emphasis on compliance and the new technology, therefore they become prone to
attacks since their cybersecurity is not secure. He affirms that cybersecurity should involve
people, processes, and technology for it to be successful. Thus, excellent and efficient
cybersecurity should establish a culture of security.
It is evident that certification and other compliance are not primarily the basis of a
robust cyber defense. For instance, a study from recent reports shows Domino’s Pizza had
recently encountered a massive breach from a group of hackers, namely “Rex Mundi. They
broke into their systems and posted information to Pastebin. However, they started demanding a
tremendous amount of money, by threatening to expose Domino’s Pizza customer’s data from
the purloined databases. Thus the information system department of this company should make
immediate strategies to deal with this threat. There should make an effort of implementing a
better risk management model.
COSO’S enterprise risk management framework/model
This model became active in the year the 1980s; its objective was to facilitate research that
aimed at finding the cause of frauds. Majorly, it enhances the development of ethical leadership
by the establishment of comprehensive frameworks (Alwan,2018, pp 137-162). Also, it guides
organizations on matters of enterprise risk management, fraud prevention, and internal control.
Thus, it plays a vital role in any organization by enhancing cybersecurity, enhancing
performance, and dealing with all issues of fraud. Therefore, Domino’s Pizza should implement
this framework to which will aid it in dealing with matters of fraud and enhancing cybersecurity.
COSO’S deals with various issues which are critical in Domino’s Pizza company (Hao et
al.,2018).

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Internal environment approach. Findings show that internal environment plays a vital role in
the operations of any organization (Salifou,2017). It establishes the nature of the organization,
influences how the organization handles risks, establish risk management, and defines various
ethical values. In the case of Domino’s Pizza, the board in charge of cybersecurity may be
lacking proper technical knowledge, diversity, and experience required to handle fraud cases.
Objective setting approach. Typically, any active organization should set goals which guide
its day to day operations. Thus the board should link the set objectives with the organization
missions which dependable with the organization risk appetite. Cybersecurity risks are a risk
which occurs due to the organization system vulnerability to threats. Thus, Domino’s Pizza
information security department should make sure cybersecurity is one of the set objectives.
Also, better strategies should be laid down by the board to prevent such vulnerabilities.
Risk Assessment approach. Risk assessment is a significant concern when it comes to
issues of cybersecurity. Thus the management should assess the impact of the risk. Domino’s
Pizza vulnerability to such a threat might have been as a result of inadequate risk assessment.
Thus the COSO guidance emphasizes the need for integrating quantitative and qualitative risk
management methodologies (Rose et al.,2015).
Risk response approach. Questions still arise on how the Domino’s Pizza organization
responded to that particular risk. However, the management should take immediate action and
returns to that risk to prevent future risks. However, there are several stages that the
administration should take to respond to the specific threat. It should attempt to reduce, accept,
and finally avoid the occurrence of such risk in the future (Suroso,2017).

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Initiation of Control activities. Suitable control activities should be initiated to make risk
responses effective. Domino’s Pizza should have reliable and effective policies and procedures
regarding cybersecurity vulnerabilities. COSO has taken a participative role by improving the
ERM model that initiates control activities. Studies show that control activities are affected by
people at any level of the organization (Kartal & Celikdemir, 2018). It is also evident that control
activities fail because the managers and the staff underutilize them. The COSO guidance points
the need for segregating duties or tasks to prevent fraudulent activities by a single person.
Information and communication. Kartal & Celikdemir argues that information is vital in
any organization (2018). Thus, it should be communicated in the appropriate time and proper
format, thus enabling the staffs and the managers to carry out their duties effectively. The fraud
carried on Domino’s Pizza might not have occurred if the information relied on time. Thus,
failure to handle any communication may result in adverse consequences such as fraud.
The monitoring security system. According to Suroso (2017), any organization should
establish a security monitoring system, that monitors all the operations. Domino’s Pizza might
have lacked an efficient monitoring system that made them vulnerable to fraudsters. COSO ERM
provides a guidance o how an organization can efficiently monitor the internal control.
Strengths of COSO’s ERM model
• Efficient use of resources
• Better standardized risk reporting
• Enhances effective coordination of regulatory and compliance matters
The weakness of COSO’s ERM model

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Throughout the discussion, it is evident that the model emphasizes the internal environment;
thus it does not consider the external environment factors which has a significant influence on
the business environment and regulatory conditions (Pallangyo, 2018).
Conclusion & Recommendation
These discussions aided in examining the cybersecurity vulnerabilities and measures taken
to prevent such vulnerability. This discussion has further explored the Domino’s Pizza company
and how fraudsters threatened it. Moreover, extensive research on COSO’S enterprise risk
management model explored. This model proves to be the best model for organizations such as
Domino’s Pizza. It guides such an organization on risk analysis methods. I would highly
recommend the COSO’S ERM model to Domino’s Pizza since it will enhance efficiency in risk
management, and cases of cybersecurity threats will reduce.

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Reference
Alwan, H.B., 2018. Policy Development and Frameworks for Cyber Security in Corporates and
Law Firms. International Journal of Legal Information, 46(3), pp.137-162.
Hao, W., Jinpeng, W., Chunwen, R. and Shiyu, Z., 2018, December. Research on Risk
Prevention and Control of Sino-foreign Cooperative Universities—Based on ERM
Comprehensive Risk Management Framework. In 4th International Conference on
Economics, Management, Law and Education (EMLE 2018). Atlantis Press.
Kartal, M.T. and Çelikdemir, N.Ç., 2018. Evaluation of Internal Control in Turkish Banking
Sector in the View of Turkey Legislations and International Internal Control Models.
In Strategic Design and Innovative Thinking in Business Operations (pp. 433-454).
Springer, Cham.
Knowles, W., Prince, D., Hutchison, D., Disso, J.F.P. and Jones, K., 2015. A survey of cyber
security management in industrial control systems. International journal of critical
infrastructure protection, 9, pp.52-80.
Rose, D., Molenaar, K.R., Javernick-Will, A., Hallowell, M., Senesi, C. and McGuire, T., 2015.
Successful Implementation of Enterprise Risk Management in State Transportation
Agencies.
Salifou, D.A., 2016. Analysis of the effectiveness of COSO's ERM model on organization
strategy, competitive advantage, and value: A qualitative study (Doctoral dissertation,
Capella University).

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Suroso, J.S., 2017. Implementation of COSO ERM as Security Control Framework in Cloud
Service Provider. Journal of Advanced Management Science Vol, 5(4).
Thakral, A., Rakesh, N. and Gupta, A., 2016, November. “Space in space”: Cyber security
capabilities in Indian context. In 2016 Online International Conference on Green
Engineering and Technologies (IC-GET) (pp. 1-6). IEEE.