Simmons Corporation is a multi-location retailing concern with stores and warehouses throughout the United States. The company is in the process of designing a new, integrated, computer-based information system. In conjunction with the design of the new system, the management of the company is reviewing the data processing security to determine what new control features should be incorporated. Two areas of specific concern are
(1) Confidentiality of company and customer records, and
(2) Safekeeping of computer equipment, files, and data processing center facilities.
The new information system will be employed to process all company records, which include sales, purchases, the financial budget, customer, creditor, and personnel information. The stores and warehouses will be linked to the main computer at corporate headquarters by a system of remote terminals. This will permit data to be communicated directly to corporate headquarters or to any other location from each location within the terminal network. At the current time, certain reports have restricted distribution because not all levels of management need to receive them or because they contain confidential information. The introduction of remote terminals in the new system may provide access to these restricted data by unauthorized personnel. Simmons’s top management is concerned that confidential information may become accessible and be used improperly. The company’s top management is also concerned with potential physical threats to the system, such as sabotage, fire damage, water damage, or power failure. Should any of these events occur in the current system and cause a computer shutdown, adequate backup records are available so that the company could reconstruct necessary information at a reasonable cost on a timely basis. However, with the new system, a computer shutdown would severely limit company activities until the system could become operational again.

Requirements:
1. Identify and briefly explain the problems Simmons Corporation could experience with respect to the confidentiality of information and records in the new system.
2. Recommend measures Simmons Corporation could incorporate into the new system that would ensure the confidentiality of information and records in this new system.
3. What safeguards can Simmons Corporation develop to provide physical security for its
(a) Computer equipment,
(b) Files, and
(c) Data processing center facilities?