Firewall decisions To decide whether the CIO has suggested an effective solution to limit risk of hacking attacks and decrease losses it is necessary to estimate the financial outcomes for two potential developments. The first alternative is inaction of the company with no changes in security system and the second is implementation of firewalls. If the company will not change its risk management strategy it will almost permanently loose 250000$ per year. The total cost of firewalls for 3 years is the sum of 10 firewalls cost and their annual maintenance costs. It equals 125000$. Consequently the cost of firewalls per year is approximately 41666$. The possibility of hacking attacks with implemented firewalls is only 3% as opposed to almost 100% probability of information leak twice or more times per year within current security system. Furthermore due to the sphere in which company operates the hacking attacks are really dangerous as the leak of information may lead to further losses of potential clients etc. Evidently the payment in amount 41666$ is quite acceptable comparing to looses of 250000$ per year. The risks of non-effectiveness are low, if they will be so, in 3 years the company will return to the previous security system. Therefore focusing on the abovementioned data it is better to implement firewalls.
Stealing Software The number of pirate copies in developing countries is rising significantly according to the UN annual report. The use of pirated software means breaching the intellectual property law and decreases the profits of original companies. At the same time poor people who want to get access to that software cannot afford to purchase legal copies. It is rather unfair that they have not equal conditions for development. To my mind it is for governmental authorities to provide the population of such companies with opportunity to get free the same information as people with higher income. That will ensure the technological development, limit the information gap and prevent some conflicts based on informational inequality. Furthermore such software will make further income growth for the people possible. At the same time some measures to ensure property rights for original producers should be obligatory taken before allowing free access to the pirated software in poor countries.
Doctorow, C. (2011, May 3). Why poor countries lead the world in piracy. Retrieved from The guardian: http://www.theguardian.com/technology/2011/may/03/why-poor-countries-lead-world-piracy
Lynch, D. (2015). Information gap. London: LNL.