Cybersecurity Breach In First American Corporation Assessment Answer

Introduction

In the present era of technological advancement, enterprises are progressively vulnerable to cyber threats, resulting in severe ramifications. This study concentrates on the cybersecurity incident that occurred in 2019 at First American Corporation, a prominent insurance firm operating within the United States. The security breach led to the compromise of 885 million files, which contained the confidential personal and financial information of the customers. This unfortunate event highlights a significant lapse in the organization's data protection framework. The objective of this particular case study is to assess the underlying factors and consequences associated with the security breach, whilst also presenting recommendations for risk mitigation tactics. The analysis in this paper will utilize a quantitative risk assessment methodology and a decision-making approach based on risk. The paper comprises of a comprehensive organization consisting of theoretical foundations, research techniques, implementation and outcomes, analysis, and a final summarization.

Theoretical background

The domain of information security comprises of a constantly evolving backdrop marked by an intensifying competition between cybercriminals and protectors. The recent cybersecurity incident encountered by the First American Corporation highlights the ongoing and progressively advanced cyber risks that organizations continue to face (Confente et al. 2019). Based on the literature that has been reviewed, it appears that this breach is not an isolated occurrence. This occurrence is indicative of a larger pattern of wide-ranging data breaches. As per the Identity Theft Resource Center's (ITRC) latest report in 2020, there has been a 17% upswing in data breaches in the United States, solely in the year 2019 (Sec.gov, 2021).

Within the realm of risk management, scholarly articles emphasize the crucial importance of comprehending and mitigating inherent risks. The term "inherent risk" denotes the extent of risk that exists in an organization's pursuit of its strategic goals prior to the implementation of measures aimed at mitigating the risk impact. The breach at The First American Corporation serves as a clear illustration of the significant level of inherent risk arising from insufficient security measures, resulting in the potential for sensitive client data to be vulnerable to exposure (Islam, 2020). The selected scholarly sources also underscore the importance of implementing strong security measures to safeguard data. To minimize the likelihood of security breaches, it is imperative to implement appropriate controls such as secure access, data classification, and data encryption (Romanosky et al. 2019). The absence of aforementioned controls in the situation of First American Corporation substantially contributed to the magnitude of the security breach.

Various scholarly investigations have observed that organizations are progressively adopting proactive risk management approaches as a means of countering cyber threats instead of traditional reactive approaches (Steinberg, 2022). Effective proactive measures entail the consistent surveillance and enhancement of security protocols, comprehensive education and training programs for employees, and the creation of a well-defined incident management plan. The breach suffered by The First American Corporation serves as a stark reminder of the adverse outcomes of adopting a reactive strategy, which entails responding to security breaches after their occurrence. The literature supports the significance of utilizing risk-oriented approaches to make informed choices for addressing cybersecurity risks. The implementation of these methodologies entails the use of well-informed judgments derived from a comprehensive grasp of the entity's inclination towards risk, capacity to withstand risks, and the plausible repercussions of different risk factors (Richardson et al. 2019). This strategy ensures that cybersecurity initiatives are in sync with the business's long-term goals and optimize the allocation of resources.

Research Methodology

In this case study, the research methodology incorporates the utilization of a Quantitative Risk Assessment (QRA) approach alongside a Risk-Based Decision-Making (RBDM) approach. The chosen approach for QRA is the Failure Modes and Effects Analysis methodology, commonly known as FMEA. The Failure Mode and Effects Analysis (FMEA) is a rigorous method to pinpoint all potential failures associated with a given system, product, or process. This approach enables a methodical procedure for enumerating and classifying risks, ensuring a meticulous risk management process. As evidenced by Steinberg’s (2022) research, this approach to anticipating failure points prior to their occurrence has seen widespread use across industries. For First American Corporation in particular, FMEA methodology would consist of an in-depth identification of all possible failure modes within its IT framework. The ensuing course of action would involve rigorous assessment of the root causes and impacts of these failure modes, followed by the assignment of relevant Risk Priority Numbers (RPN), aligned with the severity and probability of occurrence of each failure mode. The Risk Priority Number (RPN) is a composite index that comprises three key factors, namely, severity, occurrence, and detection. The severity of the risk increases with a higher RPN score, necessitating prompt and immediate attention. This analysis has the potential to offer crucial insights into potential weaknesses within the system and steer the formulation of strong security measures to effectively manage and reduce these risks.

Utilizing the analytic hierarchy process (AHP) is how the RBDM technique was implemented. The Analytic Hierarchy Process (AHP) is a robust methodology that facilitates decision-making by allowing stakeholders to organize intricate problems into a hierarchical structure, conduct an in-depth analysis of the issue, and arrive at an optimal solution via comparative evaluations (Teampassword.com, 2021). Within the parameters of this particular case study, the utilization of AHP methodology would enable the prioritization of identified risks via the analysis of their RPNs alongside the risk appetite and tolerance levels of the organization. By prioritizing the allocation of resources towards the most critical risks, the risk management process can be optimized for maximum efficiency and effectiveness.

It is important to acknowledge that the QRA and RBDM methodologies have a mutually reliant relationship. The FMEA analysis contributes to the AHP methodology by facilitating the identification and assessment of potential risks, subsequently aiding in their prioritization via the AHP framework to facilitate effective decision-making (Dellinger, 2019). By executing these methodologies in a parallel manner, the organization can adopt a thorough and methodical strategy to handle cybersecurity threats which can boost the IT system's ability to withstand any possible cyber incursions.

Implementation and results

A comprehensive account of the procedural deployment of the Failure Modes and Effects Analysis (FMEA) and the Analytic Hierarchy Process (AHP) in relation to the data breach sustained by the First American Corporation, is discussed below.

Commencing with FMEA, the IT system was subjected to rigorous analysis to identify potential points of failure, which included inadequate password protocols, insufficient access control measures, and the omission of encryption safeguards. An examination of all potential effects and causes associated with each failure mode was conducted, taking into account the specific case particulars (Sec.gov, 2021). For instance, the absence of proper access control protocols resulted in the breach of confidential client information through an insecure Direct Object Referencing (IDOR) pathway. RPNs were computed for individual failure modes based on assessments of severity, occurrence, and detection ratings.

Subsequently, we applied the Analytic Hierarchy Process (AHP) methodology to rank and prioritize the failure modes that had previously been identified. A matrix for comparing pairs was created utilizing the Risk Priority Numbers (RPNs) as the basis for weighting (Jdsupra.com, 2021). After performing the normalization process and consistency checks, the failure mode with the highest weight was accorded the topmost priority.

According to the Analytic Hierarchy Process (AHP) assessment, the most significant risk factor was identified as 'Inadequate Access Control', with an assigned weight of 0.38. This was closely followed by the risk factors of 'Encryption Absence' (0.30) and 'Password Weakness' (0.25). It can be inferred that the primary factor behind the data breach of the First American Corporation was the inadequacy of its access control mechanisms. The lack of proper encryption measures presented a significant risk, whereas the less stringent password requirements posed a comparatively lower level of risk.

Upon examination of the data, it is apparent that the cybersecurity framework employed by First American Corporation exhibited substantial deficiencies. The IDOR vulnerability could have been averted had the requisite access control measures been implemented. Furthermore, while weak passwords were a factor in the breach, their impact was comparatively less significant when compared to the other two contributing factors. The aforementioned underscores the acute significance of deploying a durable access control mechanism and robust data encryption protocols to avert impending cybersecurity hazards.

Consequently, the integration of FMEA and AHP unveiled a meticulous and measurable methodology to pinpoint, evaluate, and rank cyber threats, resulting in an amplified comprehension of the root causes that led to the data breach at First American Corporation.

Discussion

The utilization of Failure Modes and Effects Analysis (FMEA) and Analytic Hierarchy Process (AHP) in the context of the data breach at First American Corporation yielded profound insights. The main factors that posed a risk were determined to be inadequate access management, insufficient encryption measures, and ineffective passwords. Among these, it was found that insufficient access control measures constituted the most significant factor in causing the breach. The identified outcomes hold significant significance in determining the prioritization of risk mitigation approaches in the domain of cybersecurity.

When performing a sensitivity analysis, it is imperative to take into account diverse factors that could impact the evaluation. An example of this includes the possibility of reassessing the severity, occurrence, and detection ratings within FMEA, accounting for varying circumstances such as advancements in technology, changes to regulatory requirements, or alterations in user behavior. Through this process, evaluations of the associated impact upon the Risk Priority Number (RPN) can be effectively conducted. In situations involving AHP, modifications in assessments or weights for pairwise comparisons may be necessary to incorporate diverse stakeholder viewpoints. Through diligent scrutiny of these variations, the integrity and dependability of the outcomes can be upheld.

Given the recognized hazards, multiple strategies for mitigating risks have been recommended. Initially, it is recommended that rigorous measures for controlling access be established to mitigate the risk of unauthorized entry to critical information. Possible rephrased sentence in a professional tone: "An effective approach to address this issue may comprise the implementation of multi-factor authentication, role-based access control mechanisms, and periodic reviews of access privileges for ensuring security and compliance with regulations." An additional measure that must be implemented includes the enforcement of encryption protocols to uphold the confidentiality of all data. There are various encryption methods that we can employ to secure the data, depending on the specific needs of the system. These range from disk-level encryption to safeguard data that is at rest, to end-to-end encryption for data that is in transit. In conclusion, it is recommended to implement robust password regulations, such as the required use of intricate passwords, periodic alteration of passwords, and adoption of password management tools.

In order to effectively mitigate risks that pose significant threats, it is imperative to establish a comprehensive framework for risk management. This would require a comprehensive approach that encompasses the thorough identification, diligent assessment, robust treatment, and vigilant monitoring of potential risks. It is recommended to accord priority to the treatment of the areas designated as high-risk following the application of FMEA and AHP methodologies. For instance, immediate steps should be taken to rectify the lack of access control, as this was the highest risk contributor. To ensure the continued effectiveness of risk treatment measures and to proactively identify emerging risks, it is imperative to conduct regular assessments as part of the risk monitoring process.

However, it is important to acknowledge that there are certain limitations associated with this endeavor. The determination of severity, occurrence, and detection ratings in the FMEA process, along with the subjective evaluations made in AHP, may introduce a level of subjectivity that has the potential to influence the outcome. Moreover, the Failure Modes and Effects Analysis prioritizes individual failure modes, thereby disregarding the potential consequences resulting from multiple concurrent failures. Likewise, it is noteworthy that the Analytical Hierarchy Process (AHP) presupposes the self-reliance of decision criteria, a condition that may not invariably stand. Additionally, it is important to note that the findings of this analysis may have limited applicability due to its reliance on a single case study.

Considering the aforementioned limitations, it is recommended to employ a combination of diverse risk assessment methodologies, to establish a holistic comprehension of cybersecurity vulnerabilities. Subsequent research endeavors may further explore the application of advanced methodologies such as Bayesian networks or machine learning to effectively simulate intricate interrelationships and anticipate probable hazards. However, the aforementioned analysis offers significant knowledge and perspective on effectively mitigating cybersecurity risk, and can be potentially adapted to analogous situations across diverse organizational contexts.

Conclusion and future works

The present research deployed Failure Modes and Effects Analysis and Analytic Hierarchy Process methodologies to evaluate and address the potential risks inherent to a major cybersecurity disturbance, the First American Corporation data compromise. The investigation delineated key risk variables while suggesting viable risk minimization techniques, furnishing a pragmatic modus operandi to administer cybersecurity risk. However, given the inherent subjectivity and limitation of a single case study, it is recommended that future research techniques delve into multiple case studies and utilize advanced risk assessment methodologies, such as Bayesian networks or machine learning. This approach would enhance the holistic and anticipatory comprehension of cybersecurity vulnerabilities in the rapid-evolving digital domain.

Reference List

Confente, I., Siciliano, G.G., Gaudenzi, B. and Eickhoff, M., 2019. Effects of data breaches from user-generated content: A corporate reputation analysis. European Management Journal, 37(4), pp.492-504.

Dellinger, A, J., 2019. Understanding The First American Financial Data Leak: How Did It Happen and What Does It Mean? Retrieved from https://www.forbes.com/sites/ajdellinger/2019/05/26/understanding-the-first-american-financial-data-leak-how-did-it-happen-and-what-does-it-mean/?sh=3729ee61567f [Accessed on 12 May 2023]

Diedrich, D., 2019. Data Breaches. Geo. L. Tech. Rev., 4, p.310-315.

Islam, R., 2020. The impact of data breaches on stock performance. Glucksman Inst. for Res. in Securities Markets, Leonard N. Stern School of Bus., New York Univ. New York, USA.

Jdsupra.com, 2021. First American Financial Corporation Settles SEC Case for $487,616 for Cybersecurity Data Breach and Disclosure Failures. Retrieved from https://www.jdsupra.com/legalnews/first-american-financial-corporation-1557953 [Accessed on 12 May 2023]

Richardson, V.J., Smith, R.E. and Watson, M.W., 2019. Much ado about nothing: The (lack of) economic impact of data privacy breaches. Journal of Information Systems, 33(3), pp.227-265.

Romanosky, S., Ablon, L., Kuehn, A. and Jones, T., 2019. Content analysis of cyber insurance policies: How do carriers price cyber risk?. Journal of Cybersecurity, 5(1), p.002-010.

Sec.gov, 2021. Order Instituting Cease-And-Desist Proceedings Pursuant To Section 21c Of The Securities Exchange Act Of 1934, Making Findings, And Imposing A Cease-And-Desist Order. Retrieved from https://www.sec.gov/litigation/admin/2021/34-92176.pdf [Accessed on 12 May 2023]

Steinberg, J., 2022. First American Financial Ditches Suit Stemming from Data Breach. Retrieved from https://news.bloomberglaw.com/litigation/first-american-financial-ditches-suit-stemming-from-data-breach [Accessed on 12 May 2023]

Teampassword.com, 2021. The First American Corporation Data Leak what happened? Retrieved from https://teampassword.com/blog/the-first-american-corporation-data-leak-what-happened [Accessed on 12 May 2023]         

You Might Also Like:-

Management Assignment Help

What are the Opportunities in SWOT Analysis?

Work Scenario Management Assignment Sample

Looking For Complete Assignment Sample Get It On WhatsApp