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Island Banking Services is a non-US firm that works in the Financial Transactions Processing, Reserve, and Clearinghouse Activities industry, which has the NAICS 2017 code 522320. Financial transaction processing, financial instrument clearinghouse services, and reserve and liquidity services are all provided by companies in this industry. On the island, the firm has a customer care center and three branch locations, although the bulk of its clients deposit and withdraw cash via electronic funds transfers, internet banking, and credit/debit cards.
Agenda
The presentation begins with a general summary of the merger & acquisition deal and its background. It dives into the introduction of the cybersecurity strategys main standalone points and goals, ranging from prevention and identification to the response to emerging threats. It then proceeds to cover the implementation plan, barriers to success, and general recommendations.
M&A overview
In M&A deals the suggesting company is generally in the position of greater market power and influence. Due to the Island Banking Services bankruptcy and criminal history, the M&A with Pagett-Beale Solutions is a second chance for them. Yet the Padgett-Beale Solutions has a power advantage and therefore can influence the strategies of Island Banking Services, especially in the information department.
Failed companies possess the financial potential for M&A deals in cases when their structure or organizational approaches might quickly end up efficiently utilized for profit. This particular deal specifies the inclusion of operating systems, software, and other IT goods in the deal. Therefore it is reasonable to assume, that the merger company is interested in the merged companys IT resources.
The Chief Information Security Officer, often known as the CISO, is the ultimate guardian of data privacy inside a company. Theyre in charge of developing and managing the cyber dangers that come with everyday operations, as well as supporting a secure environment and preserving existing data from data theft. Risk and compliance management, technical operations, and vendor communication are the three major functions of the job.
Padgett-Beale, Inc. is a joint venture company that works in the hotel, restaurant, and resort business. An insider working at the Property Holdings and Development station was responsible for intellectual property theft. He was an integral part of the Future Plans Committees team. After this member quit and joined a rival in the Recreational Vehicle Park region, the Property Holdings and Development office head felt something suspicious was going on. After further investigation, he discovered log files on the insiders corporate laptop. A huge number of large data were taken from the companys servers and transferred to this insiders cloud account.
The digital assets and records of Island Banking Services were bought from the bankruptcy courts by Padgett-Beale, Inc. Licenses for office productivity software, financial transaction processing software, database software, and desktop and server operating systems are among these assets. The gear, software, and license necessary to run the companys internal computer networks are also included in the transaction. Padgett-legal Beales counsel was successful in negotiating the return of copies of the businesss documents with the bankruptcy court and the criminal courts, allowing the company to resume operations.
Goals
The goal-setting in the cybersecurity strategical plan lies in the balance between the general requirements of an efficient cybersecurity system and a set of specific characteristics of a particular firm. The characteristics can be categorized into capacity-related and mission-related. (Camillo, 2018) The first group can be addressed by modernization of the equipment, whereas the second concerns the aspects of internal change management and the general purpose of the business in question. Thus most of the goals discussed in this presentation can be adapted accordingly to the needs of the firm.
Cybersecurity strategy 1: overview
At the overview stage of the cybersecurity strategy, it is worth considering the industry differences between the two M&A firms. The company that specializes in hotel and resort management is unlikely to be equipped to deal with the cyber threats of the investment bank on technical and human levels. However, as the number of cyber attacks against hotels has increased in recent years, it is reasonable to assume that the relevant IT department possesses the basics of cyber security knowledge.
Cybersecurity strategy 2 adopt data principles
Organizations have shown an increased readiness to engage in threat intelligence sharing platforms in recent years. The rising need for companies to protect themselves against todays sophisticated cyber attacks has led to an open sharing of information and expertise on threats, vulnerabilities, events, and mitigation measures. (Catota, Morgan &Sicker, 2018)
While addressing the threats and protecting the existing data, professionals must ensure the data itself is up to due quality. Poorly sourced data is often used by the ransomware enthusiast to bypass the victims suspension of disbelief
Cybersecurity strategy 3 communication, collaboration, coordination
Focuses on the development of functioning communication channels within the IT department and between the IT department and the remaining company to avoid conflicts of interest and align the general corporate vision
Cybersecurity strategy 4 incorporate data stewardship
Focuses on establishing a new culture of relationship with data within the organization, based on accountability and resourcefulness.
Cybersecurity strategy 5 Establish a proactive posture against cyber attacks
Focuses on the protection of the most mission-critical and operation-critical data sets, also commonly referred to as crown jewels.
Cybersecurity strategy 6 Enhance measures to limit the impact of a potential cyber security incident
Focuses on the assumption that no matter the amount and intensity of preparation, the accidents are bound to occur. With this in mind, the Bank must be ready to respond appropriately and meet the interests of its various stakeholders
Cybersecurity strategy 7: Build resilience to recover from a cyber event
Focuses on investing in functioning recovery mechanisms, both in terms of restoring the damage to the computer systems and dealing with the data loss and potential financial consequences
Cybersecurity strategy implementation plan: adopt a proactive position
Greater levels of trust lead to a greater likelihood of a client reporting the error or violation they have encountered while using the banks online services
Barriers to success
Cybersecurity barriers to practice are becoming relatively low with the digitalization of commerce affecting the number of clients in the industry. However, the financial resources of any company are finite, and cybersecurity is by far an expensive experience due to the industrys digital online nature. Furthermore, the human error factors and faulty organizational management employees complicate the research even further.
Summary of strategy goals
Strong cyber security has been a point of emphasis in modern financial institutions, often essential to secure a customers trust. Investing in the development of better cyber security is a profitable choice since it is a form of re-investing into the company while attracting new customers.
Overall
But most importantly, the company must understand the importance cybersecurity possesses for them right now. Due to the CEOs arrest, the firm needs restoring the reputation even under the mergers protection.
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