Cost of Capital

Topics: Security, Computer security, Electronic commerce Pages: 20 (6589 words) Published: December 5, 2013
Executive summary
The main topic of our study was cybercrimes and their impact on the performance of the largest online retailer in the world Amazon Inc. But we didn’t limit our study to solely matter of informational fraud; we’ve also explored the notions of business performance management. In our study we’ve found that business performance management is relevant for today’s companies. We’ve regarded how cyber crimes impact the performance and how we can measure the impact of cyber crimes. Case study of Amazon Inc. represents the main and general information about the company, identifies its mission and objectives. We’ve evaluated the current situation in company’s business and performance. Our case also determined and found exposures of Amazon Inc. to cyber threats. We’ve reviewed the strategy and performance of the company from four perspectives: financial, customer, internal, innovation learning &growth perspective. On the basis of our findings we’ve given specific recommendations to the company that would help to achieve its goals and maintain leadership in the market of online retail. Recommendations correspond to four perspectives we’ve used to review performance of the company. We are convinced that cyber defense is an integral part of company’s performance and hence the performance management. 2. Introduction

2.1 Cybercrimes in information age
Cybercrimes appeared at the same time as the Internet. And the ways and technologies of crimes were, are and would be improving along the development of machines and technologies in the whole and in particular the Internet. Cybercrimes became the part of our world and in order to protect us from that, governments of all countries provide the laws to prevent from such things. Also there are companies, which provide the security services against cybercrimes: Cyberpath, ESET, TDI and many others. But, unfortunately, they cannot solve all the problems. The existing criminal laws in most countries should cover computer-related crimes or electronically perpetrated crimes. 2.2 Use of informational technology in fraud

The biggest cyber threat is that it may happen at any given time, it is simply impossible to find out when the new wave will hit and more importantly what type of wave will it be. Cyber threat may take different forms. Here are the most common especially for our company. The first and the least dangerous is the threat, which has not material impact on the company. As an example can be the defacing of the company’s website by hackers. Second, more serious is the threat, which is haling for the financial gain. Not only have the businesses entered the digital world. The criminals have done the same as well. And nowadays it functions just like any other business. They have their strategies, management structures, quality control and so on. For example, hackers may obtain company’s earnings reports before its official release. Having that knowledge, they may use it in making the decision of buying or selling stocks of that particular company. Keeping pace with new technologies also needs certain portion of attention. Companies’ risk exposure is constantly growing as the companies invest more and more in technologies (social, mobile, cloud, etc.). All of those can be a threat at the end of the day. Mobile, for instance, put the business in danger as the organization’s corporate data suddenly may be assessed from the outside. Furthermore, the employees do not always fully realize the threat they are undertaking by sending, sharing or receiving the information on their personal devices. The same goes for social media, where the personal and professional line is often erased. One way that a hacker can gain illicit access to a system is through “social engineering”. Social engineering is a term used to describe deception against other humans1. A hacker may devise a scheme to trick another person into providing a username and password. Social engineering is as simple...
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