The TIM-8301 (W7A1) content reviews the future risks and solutions that might apply to Armando’s Organization (AJPS). AJPS is a small automotive industry located in the U.S, which considers new technologies that the AJPS might adopt, changes in the information assets and vulnerabilities, and new threats that might appear within the organization and globally. Cybercriminals may be interested in making a fortune by selling valuable information such as company secrets that can be illegally accessed from computer systems owned by AJPS, for which the company should propose appropriate actions for defense or avoidance.
Just like other companies operating in the complexity of the global environment, AJPS faces considerable supply chain and operational risks that could hamper its chances of becoming a market leader in the automotive industry. Indeed, AJPS’s large operations across the world increase its susceptibility to multiple risks. As of 2019, the company operates 2 plants worldwide, while consumers 3 million parts of raw resources to produce over six thousand trucks and cars. Further, AJPS utilizes nearly ten hundred of suppliers when sourcing raw materials for use in the manufacture of vehicles. In Tier 1, the company depends on approximately 400 suppliers that supply crucial components to over 200 manufacturing sites. Any form of disruption in AJPS’s vast supply chain can result in severe financial repercussions for the organization. .
A typical example of how disruptions could affect AJPS’s performance is illustrated by Hookway (2011) during the massive floods that damaged infrastructure in 2011, and that caused deaths in Thailand. The floods in Thailand disrupted AJPS’s second-tier suppliers, which forced the company to hold global production in one of the production lines that contributed to it’s bottom-line. More appallingly, the company currently seeks to suspend production in Michigan due to the weather phenomenon of Polar Vortex that caused freezing due to sub-zero temperatures (Kumar, 2019)
The risks brought by climate change and workplace issues have forced AJPS to put in place engineering controls. For instance, the company advocates for the use of equipment and implementation of measures that prevent workplace injuries that arise from falls. In the same way, the company seeks to avoid risks faced by its customers by working on designing cars that can communicate with each other to prevent accidents. The risk of climate change has also encouraged AJPS to invest heavily in its R&D department to come up with vehicles that do not emit dangerous GHGs in the atmosphere and comply with environmental regulations.
The company is aware that cyber-attacks and data breaches could expose the firm to damaging repercussions. In this view, AJPS’s top leadership aims to protect the company by investing in cyber liability insurance, which covers its digital assets, business interruptions, and reputation harm that emerge from the cyberspace. Further, the insurance covers the cost of credit monitoring, customer notification, forensic investigation, and regulatory or compensation fines in case of non-compliance with cybersecurity regulatory frameworks such as the EU’s General Data Protection Regulation
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