AminataFunchess BUS 519 assign1.docx

With the proper communications plan brett may

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With the proper communications plan, Brett may experience greater loyalty from his customer base after the crisis is over, depending on if the situation is handled properly. “Customers with a high level of retailer patronage have stronger positive attitudes toward the retailer, which can introduce skepticism toward negative information regarding the retailer. Customers with a stronger relationship with the retailer tend to be more familiar with the retailer’s products, prices, and customer service, which can increase their switching costs as well. Such patrons are more likely to discount new negative information that is disconfirmatory with their prior positive experience with the retailer” (Janakiraman, Lim, & Rishika, 2018, p. 85). CIO Sergei was attempting to prevent data breaches by performing some industry standard scans. However, he was satisfied with a below-par number because it was better than the average in the industry. He did not feel it was necessary to hold his company’s security to a higher standard than an average rating. Brett, the CEO, believed that the procedures he and his team had in place were sufficient measures to keep his customers and company safe and in compliance. He trusted his management team to ensure these processes were running at peak performance, and this is where the problem firsts initiates. Flayton thought he had all the right people and procedures in place and did not conduct any checks prior to the data breach. Flayton seemed to have all the right intentions but did not follow up on making sure those processes were being followed through to meet the level of readiness he anticipated for his company. The first step in making risk culture a priority in any organization is starting with management and the influential players at the top. Leadership must take the initiative and set the
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ASSESS ORGANIZATIONAL READINESS 5 tone for the entire organization. Management must encourage training and education of the company’s risk policies and make the appropriate decisions around those policies (“erm.ncsu.edu/library/article/risk-culture-companies - Google Search," n.d.). As mentioned early, CEO Brett Flayton had all the right intentions regarding the risk culture of his organization. He attempted to have qualified staff to head these efforts to include the Vice President Laurie of Loss Prevention. Her background was in reducing store theft and she was not as familiar with data and information security. There was also Sergei, the CIO who seemed to be knowledgeable and aware of the programs in place, although they were still not 100% compliant. According to the case, top management did not seem to have enough knowledge and support needed to thwart the current security breach. Although the CEO was adamant about resolving the current issue and finding out how they got there, he did not seem to be aware of the sufficient staff, training, and due diligence required for an efficient risk management program. The risk culture of Flayton’s business was in denial of what a true risk management program should look like but not entirely to any fault of their own. The CEO and CIO must initiate proper procedures
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