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$7-22.$ Hammaker Manufacturing: Security Controls

Recall, in Chapter $11,$ the first case was about Hammaker Manufacturing $($HM$),$ a company that

decided to work with a consultant to computerize much of their operations. HM has grown sub$-$

stantially and must upgrade its information systems. The company is developing a new, integrated,

computer$-$based information system. In conjunction with the design of the new system, the man$-$

agement is reviewing the data processing security to determine what new control features should

be incorporated. Two areas of concern are $(1)$ confidentiality of company and customer records and

$(2)$ protection of data, computer equipment, and facilities.

The new information system will process all company records, including sales, purchases, bud$-$

geting, 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. Employees will also be able to access the system with laptops and

handheld devices via a secured wireless network.

At the current time, certain reports have restricted distribution because not all levels of manage$-$

ment 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. Management is concerned that confidential information may become accessible and be

used improperly.

The company's management is also concerned with potential physical threats to the system, such

as sabotage, fire damage, water damage, or power failure. With the new system, a computer shut$-$

down would severely limit company activities until the system is operational again.

Requirements

Identify and briefly explain the problems HM could experience with respect to the confidentiality

of information and records in the new system.

Recommend the measures HM could incorporate into the new system that would ensure the

confidentiality of information and records in this new system.

What safeguards can HM develop to provide physical security for its $($a$)$ computer equipment,

$($b$)$ data, and $($c$)$ data processing center facilities?