Chapter 18 Flashcards
What is risk escalator strategy?
Companies are like people walking up a DOWN escalator. (You have to keep moving.)
In which two factors are managing risks divided?
Cost of protection vs downside of risk.
How are the four different types of ways of managing risk made up?
The downside of risks is?
Tolerable
In-tolerable.
The cost of protection can be?
High
Low
What er different options for security & availability?
- Category level: different levels op safety.
- Service & data level: each item/data has and unique security level.
Postive & negative point of category-level protection?
Postive: more trusting.
Negative: under and over protection.
Positive & negative point of service & data level?
Positive: no over and under protection
Negative: more overhead
Which four types of crisis response strategies are there?
- Defensive
- Accomodative
- Moderation
- Image renewal
What are the strategy components of defensive?
Denial,
Exuse.
What are the strategy components of accomodative?
Apology,
Remidial action.
What is remidial action in the accomodative strategy?
Repair and control the damage.
What are the strategy components of moderation strategy?
Ingratiation
Justification
What is Justification in the moderation strategy?
Seeking to minimaze the precieved damage.
What is Ingratiation in the strategy component of moderation?
Seeking to make the stakeholders like the organization.
What is Correction commitment in image renewal?
reassuring stakeholders that the organization will take whatever steps are necessary to avoid similar breach incidents in the future.
What is Stakeholder commitment in the image renewal strategy?
Reassuring stakeholders that the firm is committed to providing the best services and/or products in spite of the breach incident.
What is Value commitment in image renewal strategy?
Reassuring stakeholders that the firm is committed to its core values.
What is the effect of crisis on stock prices?
