INTERNET LAW - Data Privacy and Data Security: The New Imperative
http://www.ibls.com/internet_law_news_portal_view.aspx?s=latestnews&id=1904
This article stresses the importance of IT in the survival and flourishing of a company. IT over recent years has ruled the business world, and it makes businesses a lot more efficient and integrated. Companies that continue to evolve and make advances use IT as a competitive advantage, while those that do not, see their way slowly going out of business. This electronic information which contains the companies backbone (assets, trademarks, key information etc.) is essential. If this information were to get in the wrong hands it could be devastating to a company. Some of the consequences may include damage of reputation, lawsuits, and severe financial penalties.
The importance of IT to a company makes it even more crucial that a company protect there electronic information from those who may try to sabotage it. This may include employees, hackers, or competitors. I believe that in order for company to survive in a competitive business world they must set aside a hefty budget just for the improvement and monitoring of IT systems in the business. Monitoring an IT system from potential attacks has grown to be a very difficult task than in past times. The systems must be monitored on a daily basis insuring the confidentiality of a companies information.
The article states that a regular auditing committee will not be effective in surveillancing the IT systems because their strength is in financial statements. I agree with the article in that the best method to monitor systems is creating a committee that comprises of specialized technology personnel with limited oversight by an auditing committee. The personnel in the specialized technology committee will be the best suited for the task because they understand the systems and know how to work with them. The difficulty lies in selecting individuals that are trustworthy. This proves to be not as easy as it sounds because many people are driven to improve their own situations.
Nonetheless, IT is a critical part of a company. Its constant evolution and monitoring are the keys to success in a company. Many companies that have failed to do this have suffered dearly. For instance, ChoicePoint suffered a 15-20 million dollar loss in sales because of a data breach. Companies must make IT a priority if they do not wish to suffer the same fate.
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2 comments:
Banking is clearly one of the most private relationships that any of us have with an outside provider. Breaches can ruin credit reports, job clearances, etc... Can we really regulate our way through this quagmire?
Yes, Monitoring and improving IT systems in a business is very important, also with the updates in technology. Improving IT as well in securing the company. I also read about businesses/banks that failed because of not regulating there IT system.
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