Introduction
There are quite some benefits for a firm that invests in information security. The ability to cope effectively with today’s computer threats such as computer viruses/worms, computer threats such as web hacking/breakings/defacement, internet disruptions, and other cyber events is on the verge. Insecurity has caused the delivery of products in the virtual market complex and progressively slow since people want to countercheck the viability of a transaction before engaging in it. Others are too threatened by the risks involved in virtual transactions.
Main Body
Today the designers of products, manufacturers and, marketers are in different locations and often need to complete transactions through the net. Their information requires proper security for effective collaboration. Many large companies such as Wal-Mart engage their suppliers through the internet for the routine purchases and supplies to the various supply chains. Substantial investment in the security of information is therefore crucial as part of extending the enterprise. The big companies can invest heavily in security compared to the smaller companies who are the suppliers or customers. The effect is on both all the companies for instance the recent attacks on giant search engines; Google and Yahoo in China, but more sophisticated and disproportionate on smaller firms.
The risks involved entail disruptions or delays on supplies or demands especially on companies with extended enterprises. Other risks may include stolen patent laws, compromise of data integrity and others that are worse such as total loss and manipulation of information to gain profits. Most executives do not understand the viability of information security and therefore the factors that drive the firms into the investment include; customer requests, government regulations and business policies or requirements. In the marketplace, some companies quantify the investment in information security as a competitive advantage because customers feel comfortable transacting in such firms.
What are the benefits of investing in Information Security? Does the investment decrease the cost and risks? The insurance companies, arbitrageurs and, financial trading firms manage risks by understanding the methodologies behind the risks experienced by the client firms (Schneier, 2009). A firm can quantify its value through evaluation of performance or in the course of comparison between the prospective projects and the pending work. The quantitative risk analysis shows how the control adds value in a reputable and comparable manner.
By investing in security control measures, a company can safeguard its productivity. For instance, what amount of time is spent by employees surfing the net while they are supposed to be working on viable projects? How much productivity is lost due to downtime? The ability to monitor such events enables the business to prosper. Secondly, the company can control the data losses through investment in high backup solutions on the server. It is easy to get the better cost of reworking through these backup solutions. It is very difficult to quantify the amount of data that can be damaged through malicious code. As a defense and countermeasure process, it is therefore important to note that having a good backup system enhances recovery (Easttom, 2006). It is equally very important for the outsourced company to ensure proper backup less they suffer from cost-related losses. A company such as TJ Maxx was facing a lawsuit by several banking groups in Boston due to its inability to recover compromised cards (Kerber, 2007).
Conclusion
Today, system security saves the business proceedings from various performance hitches such as bleach of data or impacts on reputation. Although it is difficult to predict the value of Information Security, it is helpful and important for determining the business value, especially when considering a new project. One would compare the amount of useful information available from an existing information security system.
References
Easttom, C. (2006). Network Defense and counter measures principles and practices: Security Series. Pearson Prentice Hall
Kerber, R. (2007). Cost of Data Breach at TJX sours to $256m. Web.
Schneier, B. (2009). Security ROI Fact and Fiction. Web.