Boss, I Think Someone Stole Our Customer Data
First Assignment
BUS 519 - Project Risk Management
Strayer University
Dr. Shah Jamali
April of 2013
The one that I believe to be the best solution to address the issues faced by Flayton Electronics is that of James E. Lee. I would definitely use his recommendations because it shows all the key areas that are crucial in a risk response plan. Lee’s suggestions are typical of contingency planning; according to Heldman (2005), contingency planning is a form of acceptance because if the risk occurs, you are willing to accept the consequences and devise a plan to deal with those consequences. He is likely to act with urgency by pointing the affected parties, as the longer it takes for the company to do this will make then appear less credible.
Lee also recommended that once the risk is appeared, timing is a very key element in implementing a risk response plan to minimize damages. This has to be in the form of a prompt public disclosure once adequate information has been gathered; brand restoration should be initiated through public statements to help improve the company’s image; toll-free hotlines should be set up to address customers concerns; loyalty incentives in the form of discounts and sales should be given to compensate those customers that still stay loyal to Flayton’s; releasing a formal public relations statement to acknowledge the breach and to assure the public that the matter is being taken care of; finally handling secondary risks that may have occurred as a result of the situation i.e. blogs, social media, faulty media reports, etc.
Lee debated that if Brett Flayton and his team can mitigate the effects of the damage to their brand and reputation, they will be able to rise above the situation despite the fact that it may take them several years to recoup.
MEMORANDUM FOR SECURITY RESPONSE
TO: Brett Flayton Chief Executive Officer Flayton Electronics 1 Technology
BUS 519 - Project Risk Management
Strayer University
Dr. Shah Jamali
April of 2013
The one that I believe to be the best solution to address the issues faced by Flayton Electronics is that of James E. Lee. I would definitely use his recommendations because it shows all the key areas that are crucial in a risk response plan. Lee’s suggestions are typical of contingency planning; according to Heldman (2005), contingency planning is a form of acceptance because if the risk occurs, you are willing to accept the consequences and devise a plan to deal with those consequences. He is likely to act with urgency by pointing the affected parties, as the longer it takes for the company to do this will make then appear less credible.
Lee also recommended that once the risk is appeared, timing is a very key element in implementing a risk response plan to minimize damages. This has to be in the form of a prompt public disclosure once adequate information has been gathered; brand restoration should be initiated through public statements to help improve the company’s image; toll-free hotlines should be set up to address customers concerns; loyalty incentives in the form of discounts and sales should be given to compensate those customers that still stay loyal to Flayton’s; releasing a formal public relations statement to acknowledge the breach and to assure the public that the matter is being taken care of; finally handling secondary risks that may have occurred as a result of the situation i.e. blogs, social media, faulty media reports, etc.
Lee debated that if Brett Flayton and his team can mitigate the effects of the damage to their brand and reputation, they will be able to rise above the situation despite the fact that it may take them several years to recoup.
MEMORANDUM FOR SECURITY RESPONSE
TO: Brett Flayton Chief Executive Officer Flayton Electronics 1 Technology
References: Hillson, D., & Simon P., (2007) Practical Project Risk Management: The Atom Methodology. Management Concepts Kloppenborg, T., Shriberg, A., Venkatraman, J. (2003) Project Leadership Robertson, J., (2011). Customers stay despite high profile breaches. Retrieved 06/05/2012 from http://www.pewinternet.org/Media-Mentions/2011/Customers-stay-despite-highprofile-data-breaches.aspx