Reference no: EM131406487
A firm is considering two options for improving the security of its employee accounts from remote compromise. The firm calculates that the probability of compromise without enacting any additional security measures is 0.5, and that successful attacks cost the company $20K. Option 1 is to adopt a stricter password policy (e.g., a minimum of 8 characters, including at least one special character and upper-case letter). Option 2 would manually disable browser plug-ins from Adobe.
Option 1 is cheap, costing $500 initially and $1K annually due to added overhead from dealing with more password reset requests. It is not especially effective, reducing the probability of attack to 0.4. Option 2 is much more effective, reducing the probability of successful attack to 0.1. However, it imposes high indirect costs on workers, estimated at $5,000 initially due to training and $5,000 each year.
Include any R code used in the calculation as part of your homework.
a. Calculate ROSI for each method, based on the initial costs only. Based on this metric, which approach is preferred?
b. Calculate the NPV for each method assuming a 6% discount rate. Assume that any savings beyond eight years are ignored. Based on this metric, which approach is preferred?
c. Having calculated ROSI and NPV for both options, which option would you recommend investing in and why?
d. Plot the NPV for both methods as a function of the discount rate (for discount rates up to 60%). Include the code and a printout of the graph with your assignment. Your graph should look similar to this graph, which is calculated for the example from the lecture notes:Include your R code that created the graph.
e. Which option mitigates more risk? Which option accepts more risk, and how much risk is accepted annually by that option?
|
Prepare a report on large business and network security
: Research and prepare a report on large business's and network security and current trends in the area of IT Security
|
|
Examine the role of wellness in society
: IDS 402- For this part of the assessment, you will examine role of wellness in society and how it influences aspects of culture and the individual. To help guide your analysis, you will explore a topic that has been discussed in this course.
|
|
Foundation for the design phase of the project
: In the prior unit, systems planning, you prepared a feasibility study and proposed a broad solution to problems you identified. In the systems analysis phase you will develop a model of your proposed system. This phase applies modeling techniques ..
|
|
Research paper on computer programming
: Research Paper on computer programming, different coding languages and their impact on the Technology field.
|
|
Options for improving the security
: A firm is considering two options for improving the security of its employee accounts from remote compromise. The firm calculates that the probability of compromise without enacting any additional security measures is 0.5, and that successful atta..
|
|
Why does it provide a relatively poor hedge
: Explain how a stop-loss hedging scheme can be implemented for the miter of an out-of-the-money call option. Why does it provide a relatively poor hedge?
|
|
Discuss the overview of network security fundamentals
: They provide you with the following report outline to use: Introduction and Overview of network security fundamentals, security threats, and issues (discuss from a companywide standpoint)
|
|
Generate a list of random numbers
: Write a program in Python that generates 20 random numbers and stores them in a list. The program should store the numbers in an array. Use the list using the built-in functionality of the print functions. Your output should look like this:
|
|
What is the 5-day 99% value at risk for the portfolio
: Consider a position consisting of a 8100,000 investment in asset A and a 5100.000 investment in asset B. Assume that the daily volatilities of both assets arc I% and that the coefficient of correlation between their returns is 0.3. What is the 5-d..
|