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Question 10

SCENARIO -

Please use the following to answer the next question:

Henry Home Furnishings has built high-end furniture for nearly forty years. However, the new owner, Anton, has found some degree of disorganization after touring the company headquarters. His uncle Henry had always focused on production – not data processing – and Anton is concerned. In several storage rooms, he has found paper files, disks, and old computers that appear to contain the personal data of current and former employees and customers. Anton knows that a single break-in could irrevocably damage the company's relationship with its loyal customers. He intends to set a goal of guaranteed zero loss of personal information.

To this end, Anton originally planned to place restrictions on who was admitted to the physical premises of the company. However, Kenneth – his uncle's vice president and longtime confidante – wants to hold off on Anton's idea in favor of converting any paper records held at the company to electronic storage. Kenneth believes this process would only take one or two years. Anton likes this idea; he envisions a password-protected system that only he and Kenneth can access.

Anton also plans to divest the company of most of its subsidiaries. Not only will this make his job easier, but it will simplify the management of the stored data. The heads of subsidiaries like the art gallery and kitchenware store down the street will be responsible for their own information management. Then, any unneeded subsidiary data still in Anton's possession can be destroyed within the next few years.

After learning of a recent security incident, Anton realizes that another crucial step will be notifying customers. Kenneth insists that two lost hard drives in question are not cause for concern; all of the data was encrypted and not sensitive in nature. Anton does not want to take any chances, however. He intends on sending notice letters to all employees and customers to be safe.

Anton must also check for compliance with all legislative, regulatory, and market requirements related to privacy protection. Kenneth oversaw the development of the company's online presence about ten years ago, but Anton is not confident about his understanding of recent online marketing laws. Anton is assigning another trusted employee with a law background the task of the compliance assessment. After a thorough analysis, Anton knows the company should be safe for another five years, at which time he can order another check. Documentation of this analysis will show auditors due diligence.

Anton has started down a long road toward improved management of the company, but he knows the effort is worth it. Anton wants his uncle's legacy to continue for many years to come.

To improve the facility's system of data security, Anton should consider following through with the plan for which of the following?

    Correct Answer: A

    To improve the facility's system of data security, Anton should consider following through with the plan for customer communication. Notifying customers about security incidents is crucial, as it builds trust and ensures transparency in case of any data breaches. While controlled access at the company headquarters (Option D) is important, it addresses only the physical aspect of security and not the immediate concern of existing data breaches and customer trust which Anton is keen on maintaining. Effective communication about potential data breaches aligns with his goal of safeguarding the company's reputation and ensuring no loss of personal information.

Discussion
MaritzTeeOption: D

D is correct. Implementing controlled access at the company headquarters will help secure the physical premises, ensuring that only authorized personnel can access areas where sensitive information is stored. This is a fundamental step in protecting against data breaches and aligns with Anton's goal of guaranteeing zero loss of personal information. While the other options are important, controlled access addresses the immediate concern of physical security, which is critical given the disorganized state of the company's data storage.