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Risk Analysis

Louie Galaz

MS-CSOL, University of San Diego

CSOL 500-Foundations of Cybersecurity

Dr. Michelle Moore

May 30, 2022

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Risk Analysis

Introduction

Within contemporary organizations, risk analysis has become a key factor where the

management has been focused on ensuring disaster recovery plans are on standby at any time.

This helps in time of crises, that an organization is able to recover and continue their operations

without much alterations. Within this essay, the main aim is to address the key areas concerning

disaster recovery planning. The paper will focus on Netflix as a brand and as an organization.

Financial losses due to missed sales opportunities or disruptions to revenue-generating

activities

Business disruptions, and other factors such as the missed sales opportunities can have

immense impacts on an organization. Focusing on Netflix as the major organizations within this

essay, it is possible to conclude that, there are major financial losses that would be incurred due

to disruptions within the business. One of these major losses is the pure economic loss. Pure

economic loss situations include a monetary loss, which does not include destruction of property

(Farnsworth, 2015). They are simply financial harm incurred because to the carelessness of some

other party — exclusive of bodily injury to a person or equipment. In other words - such losses
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are solely economic. If a person or corporation participate in a careless conduct that affects an

individual or a firm monetary loss, it would be categorized as a pure economic loss.

Brand Reputation

One of the primary cybersecurity worries for businesses with a digital platform such as

Netflix is the potential impact on their brand image. Some of the damage the brand reputation

would undergo is data loss (DiStaso, 2018). Undoubtedly, the most detrimental effect of a

cyberattack is on the company’s business model. In the data breaches can result or other potential

problem, perceptions of insufficient cybersecurity may have a significant effect on a brand

success. In addition to penalties and possible punishments from regulating authorities, the bad

publicity and public outcry will undermine the brand's image and integrity, resulting in massive

consumer and economic damages in the prospective. DDoS assaults can harm the reputation of a

brand in two primary ways, both of which are related to the denial of service to consumers

(Nathiya, 2017). If a client is attempting to traverse a site that is excruciatingly sluggish due to

DDoS demands, the likelihood of the customer completing their browsing of the site with a

transaction is minimal. In addition, if the site often runs slowly, resulting in poor user

engagement, the likelihood of these prospective buyers returning to the site is minimal.
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This in a greater magnitude affects and impacts customer satisfaction. For instance, on

the Netflix site, brand reputation can greatly impact customer satisfaction. Customers will leave

negative reviews while trying to access the site. These negative reviews highly impact profits

and losses of the brand, and results to loss of consumers of the brand.

Employee Productivity

Employee productivity would reduce as there is little motivation to deliver. This would

result to the disengaging of the employees from work, and delivering high quality products. This

could result to a lack in an organization when many people do not feel interested, engaged, and

effective. Something so essential that it has a significant influence on the team's morale and,

eventually, on the company's profits - a disengaged employee may cost the brand approximately

$16,000 every year (Allam, 2017).

In light of this, it is evident why it is crucial for businesses to comprehend what precisely

influences employee participation and, more crucially, what they can do to reduce tardiness and

their turnover of employees while increasing productivity, devotion, and motivation. Also,

numerous labor hours can be lost while seeking to place back the brand to where it was.

Risks to Human safety

The human element of cyber security risk is often referred to as "insider danger." The

term "insider" encompasses both workers and non-employees, such as consultants. The detail

that insiders are an essential component of an establishment's actions and have authorized access

to Information makes it challenging to manage the human errors that contribute to cyber security

risk (Mazzarolo & Jurcut, 2019). 68 percent of organizations feel "moderately to severely

susceptible" to insider attacks, according to cyber security Insiders' 2020 Insider Threat Report.
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This is hardly unexpected in light of recent cyber-attack stories, like the 2020 Twitter breach, in

which high-profile Twitter accounts, such as Barack Obama's, were hacked and also exploited to

deceive Twitter users into production of illegal financial dealings. Twitter's share price fell by

4% as losses are anticipated to be over $180 million (£129 million). The breach involves targeted

phishing of Twitter workers and the theft of privileged passwords. Cybercriminals exploit human

factors to gain unauthorized access, steal passwords, and infiltrate IT networks and devices with

ransomware.

Progress towards any business initiative will fail due to the immense number of threats

inhibiting the progress of the brand. With insider threats threatening the human resources, it is

difficult to introduce new business initiatives threats such as phishing, and ransomware attacks

will be a threat towards the brand financials and progress. Additionally, the attackers will have

an upper hand within the new business initiatives making it challenging to move forward and

make any progress. Additionally, with low employee productivity, the brand will have fewer

human resources to push the business initiative further. Low productivity is as a result of low

motivation levels, increase in resignations from the staff, and more employees quitting the

organization.
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References

Allam, Z. (2017). Employee disengagement: A fatal consequence to organization and its

ameliorative measures. International Review of Management and Marketing, 7(2), 49-52.

DiStaso, M. W. (2018). Communication Challenges in Cybersecurity. Journal of Communication

Technology, 1(1), 43-60.

Farnsworth, W. (2015). The Economic Loss Rule. Val. UL Rev., 50, 545.

Mazzarolo, G., & Jurcut, A. D. (2019). Insider threats in Cyber Security: The enemy within the

gates. arXiv preprint arXiv:1911.09575.

Nathiya, T. (2017). Reducing DDOS Attack Techniques in Cloud Computing Network

Technology. International Journal of Innovative Research in Applied Sciences and

Engineering (IJIRASE), 1(1), 23-29.