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Strengthening Cybersecurity and Rebuilding Trust at Laguna Productions Alfonso Davis Professor A. Richards Business Law and Ethics March 17 Background of Laguna Productions Laguna Productions is a company that grew fast, opening an office in New York. They make money by creating content that many people like to watch or listen to. Until now, they failed to spend extra money to protect their computer systems from hackers. Due to their large following and success, they caught the attention of a hacking group called NY Rebels. Introduction to the Issue Laguna Productions was attacked by a group named NY Rebels. This caused a huge problem for the company. Private info of around 10,000 people was stolen and shared online. This info has been seen more than a million times on the dark web. The company did not spend $1 million to protect against such attacks Now, everyone at Laguna Productions is very worried about the trouble this might cause. Common Law Theories of Liability People affected might use the negligence theory. This means they think Laguna did not do enough to protect their info. Breach of confidentiality is another theory. This is about breaking the promise to keep info safe (Kruikemeier et al., 2019). Victims could also claim invasion of privacy, meaning their personal information was wrongly Used Laguna may be liable for claims of emotional distress, meaning the hack caused a lot of stress and upset of People effected. Lastly, victims might say Laguna did not tell them soon enough about the hack. Statutory Liabilities in California and New York In California, companies must protect personal info. If they don’t, they can be in big trouble. California’s law also says people must be told quickly if their info is stolen. In New York, similar rules exist. Companies must have good security to protect personal information (Tawalbeh et al., 2020). New York also has strict rules about telling victims of a data breach quickly. Both states allow people to sue companies if they do not follow these rules. Ethical Actions to Mitigate Harm Laguna Productions should say sorry to everyone affected. This shows they care. They could offer free services to help protect the victims’ info in the future. Laguna should also give clear, simple instructions on what victims can do next. It’s important for Laguna to keep talking to the victims. They should update them on what’s being done. Lastly, Laguna could support laws or efforts to protect people’s info better in the future. How to Address the Current Problem Laguna should work with experts to close the hole the hackers used. This means fixing the weaknesses in their system. They need to find out exactly what info was stolen and tell the affected people what happened. Laguna should talk to the police and cyber security experts to try to catch the hackers. Offering help like credit monitoring to those affected can make things a bit better for them. It’s also smart for Laguna to learn from this mistake and train their employees on how to keep information safe. Plans to Prevent Future Data Breaches Investing in stronger security systems is a must. This means spending the money they didn’t spend before. Regular checks of their security to find and fix problems before hackers can use them. Teaching everyone at Laguna, from top to bottom, how to spot and stop security risks. Creating a quick response plan for any future hacks so they can act fast to protect info. Working with other companies and security experts to stay ahead of new hacking methods (Alhayani et al., 2021). Laguna should make a promise to always put protecting personal info at the top of their list. Rebuilding Trust with Customers and Investors Be open and honest about what happened and what Laguna is doing to fix it. Show clear changes and improvements in security to prove things will be different. Regular updates on security improvements can help keep everyone informed. Engage with customers and investors through meetings or online sessions to answer their questions. Create a better customer service team dedicated to dealing with concerns about privacy and security. The Role of Leadership in Crisis Management The CEO and Board must lead by example, showing they are serious about fixing the problem. They should be involved in developing the new security plan and make sure it’s carried out. The leaders should also talk to employees, boosting morale and emphasizing the importance of security. It’s key for leaders to communicate openly with the public, showing they are taking responsibility. Lastly, they should ensure Laguna learns from this crisis to improve its resilience against future threats. Conclusion and Recommendation This hack was a wake-up call for Laguna Productions. It showed the need for better security. By taking strong, ethical steps, Laguna can help fix the harm done and protect against future attacks. It’s important for everyone at Laguna, especially the leaders, to work together on making these changes. Improving security and being open with those affected will help rebuild trust. Let’s all commit to making Laguna Productions a safer, more secure place for everyone’s information References Alhayani, B., Abbas, S. T., Khutar, D. Z., & Mohammed, H. J. (2021). Best ways computation intelligent of face cyber attacks. Materials Today: Proceedings, 26-31. Kruikemeier, S., Boerman, S. C., & Bol, N. (2020). Breaching the contract? Using social contract theory to explain individuals’ online behavior to safeguard privacy. Media Psychology, 23(2), 269-292. Tawalbeh, L. A., Muheidat, F., Tawalbeh, M., & Quwaider, M. (2020). IoT Privacy and security: Challenges and solutions. Applied Sciences, 10(12), 4102.
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