The purpose of this assignment is to analyze an organization\'s tolerance for ri
ID: 424705 • Letter: T
Question
The purpose of this assignment is to analyze an organization's tolerance for risk and develop an appropriate security policy to address risk. 1 write a 500-word paper that defines the three levels of risk tolerance (risk-averse, risk-neutral, and risk-seeking). Include the following in your discussion. Provide a real-world organization that is an example of each level of risk tolerance. Include the company name and industry for each. Include an explanation of whether the company is risk-averse, risk-neutral, or risk-seeking. Summarize the advantages and disadvantages each organization faces while engaging in the form of risk tolerance it exhibits. Using one of the three organizations profiled, explain how the pillars of information security (confidentiality, integrity, and availability) influenced the risk tolerance perspective of the organization in your discussion, consider the regulations the organization must adhere to, relationships with third-party organizations with remote access, customer expectations of security, and the level of availability the organization must sustain.
Explanation / Answer
Basically there are 3 level of risks
Example: News corp owned by Rupert Murdoch
News Corp took risk of phone hacking to increase its circulation. If this scandal would have been big would have resulted in closing of company. News corp somehow escaped by paying compensation to victims. Advantage of this strategy is company quickly becomes popular and increase market share. This results in increased profitability. One disadvantage is if strategy fails company might be forced out of business.
Example: Microsoft
Microsoft took a small risk of entering Mobile handset world by buying Nokia to promote windows phone,but when they noticed that product is failing, they quickly changed to Android phones. Advantage of this strategy is company risk little to gain market. If strategy fails there is no much loss. One draw back is it will not result in significant market share, hence not suitable for start ups.
Example: walmart
Walmart never enters any country or city without owning the land they do business in. i.e. all walmart stores are established in company owned land. Walmart never risks by renting stores.
Advantage is company would be stable without risk of falling out of business. In the long run company would be benefitted by this policy. One draw back is this strategy is not suitable for start ups.
The pillars of information security (confidentiality, integrity, and availability) which influence the risk tolerance perspective of the organization:
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