Cybersecurity is one of the significant contemporary issues in the world that has a significant impact on the security, performance, productivity, brand image, and reputation of the organization (Bada et al., 2019). Thus, it is necessary to protect the confidential information of the organization such as consumer data and other useful and important data.
Relevant laws and regulations
Gramm-Leach-Bliley Act that instructs financial institutions to disclose and explain their practice of information sharing to their customers as well as to protect or safeguard the consumer and sensitive data has been amended by the Consumer Data Security and Notification Act. Gramm-Leach-Bliley Act has been amended to entail the leak of security breaches by the financial organizations. Cybersecurity regulation has also been introduced to protect sensitive information (Srinivas et al., 2019). It helps in upholding personal information. Apart from this, the Information Protection Security Act also plays a significant role in protecting sensitive information. It requires a data broker to ensure that data is confidential and accurate. It is also responsible for authenticating and trashing users, detecting as well as preventing activities that are unauthorized and reducing potential harm to individuals.
Current situation of the bank
There is huge pressure on the bank currently. The bank is facing pressure and challenges from the government, media, as well as customers of the bank. The current situation of the bank is alarming because the hackers have promised to publish more information that they have stolen. It may further hamper the reputation as well as the performance of the bank. Therefore, there is a need to make sensible decisions in order to reduce the impact of the security breach and protect the reputation of the bank in the eyes of all the key stakeholders of the bank. Highly confidential information of the clients of the bank has been stolen that includes contact numbers, financial transactions, particulars of accounts, as well as credit card details, have been stolen. This is one of the biggest breaches under the intellectual property right for an organization. It raises a question on the security system of the bank and the bank is also needed to review its security measures and take effective steps to strengthen it. While formulating the decision, the bank needs to consider the above-stated factors to protect the confidential information of the clients.
Impact of stolen proprietary documents
The impact of stolen proprietary documents is significant and can significantly affect the organization and the clients having an account in the bank. The proprietary documents include secrets of the business process and functions as well as the method of conducting business. Every organization has a unique set of methods to conduct their business. Thus, theft of proprietary will reveal the secrets of the bank that will affect its performance. The whole process of conducting business will be needed to change to protect the confidential information of the bank and the client (Banker & Feng, 2019). The business as well as marking plan of the organization will also be impacted due to the theft of proprietary documents. Complete details of the customers of the bank will be lost and it is one of the biggest threats to the bank.
Legal and regulatory obligations
The legal and regulatory obligation for the bank is that the bank should strengthen its information system and security system to protect the confidential information of the bank and clients. The bank should reveal the breach of data to its customers along with its impact on the clients of the bank. It is necessary so that clients can take appropriate actions to avoid damages (Porcedda, 2018). The bank should also take appropriate actions to protect the clients and their information. It is also necessary to show honesty as well as loyalty towards the client. It will prove that the bank is strong as well as ethically strong to protect the confidential information of the client.
Ethical and professional responsibility
The bank is responsible for protecting the information of the clients. It must reveal the breach of security so that the clients can be aware of the right scenario and take effective steps to protect themselves. The bank is responsible for reviewing its security measures and implement strong security measures to protect the information of the client. The bank should also go for reducing the impact of the security breach.
The decision of the CEO
The suggestion made by the CEO seems to be genuine thus; it should be implemented in the bank in order to save its repetition and avoid further reputational damage. However, the fact is that the CEO is faking the information that will severely damage the reputation of the bank. As more information will be revealed by the hackers, legal action can be taken against the bank and the bank officials that may lead to closing the bank.
The bank should disclose the information of security breach and make aware of every customer of the bank, media, and government about the same. It helps in saving the reputation of the bank.