For this project, you will leverage your research from Project #1 and analysis from Project #2 to develop a risk mitigation strategy for your chosen compan
For this project, you will leverage your research from Project #1 and analysis from Project #2 to develop a risk mitigation strategy for your chosen company. If necessary, you can adjust your Information Usage Profile or your Risk Profile using feedback from your instructor and additional information from your readings and research. The deliverable for this project will be a Risk Mitigation Strategy that includes a Security Controls Profile based upon the security and privacy controls catalog from NIST SP 800-53 Revision 5 and the security functions and identifiers from the NIST Cybersecurity Framework (CSF)
2
IT Risk Analysis of Walmart: Cybersecurity Challenges and Mitigation Strategies
Name
Instructor
School
Date
IT Risk Analysis of Walmart: Cybersecurity Challenges and Mitigation Strategies
1. Introduction
Information about the company / Walmart Inc. is a global retail store that is established in Bentonville, Arkansas, and it has more than 10,500 stores in 19 countries (Mandiant, 2023). The Wal-Mart retail includes both offline and online purchasing facilities. fitted with an elaborate supply system and comprehensive support. Walmart leverages cloud, artificial intelligence, automated supply chain systems, POS, and customer relation management systems in order to create efficiency and an effective shopper experience. Such a large firm working in the technological field with a lot of reliance on IT definitely requires a comprehensive risk assessment of their network systems (Mandiant, 2023).
As the global giant goes through a digital evolution, the risks associated with cyberattacks are likely to affect Walmart in several ways, such as disrupting its operations, affecting its financial health, and harming its corporate image. The retail sector is especially vulnerable to hackers, virus attacks, internal threats, and fraudulent activities that can negatively affect the delivery of services while being financially and legally costly. Therefore, in order for Walmart to sustain loyalty and business, they have to safeguard customer information, payment methods, supply chain networks, and company information.
This paper aims at considering the key IT risks for Walmart and evaluating the effects of these threats as well as coming up with solutions to the threats. Risks resulting from the evaluation based on NIST SP 800-30 R1 guidelines are to be grouped according to external, internal, regulatory, and technological sources impacting Walmart’s business processes and its IT environment (NIST, 2012).
2. Additional Research on Walmart’s IT Operations
Company Business Overview
Walmart is one of the largest retail business organizations in the global market that has both physical stores and an online presence. Its business strategy is based on low costs, speed, and technology in its supply chain. It supplies various products for procurements: foods and groceries, electronics and appliances, fashion and clothing, and home and furniture, among other products, to millions of its clients on a daily basis.
For its massive operation the business uses various IT facilities, which are as follows:
Cloud Computing: Utilizes Microsoft Azure and its affiliated proprietary cloud solutions for the customer as well as the operation data storage and processing.
Artificial Intelligence (AI) & Machine Learning: Enhances inventory forecasting, customer personalization, and fraud detection.
Customer Relationship Management (CRM) Systems: Details of the customers’ communications with the firm, their purchases within the firm and their marketing choices.
Point-of-Sale (POS) Systems: Facilitates secure transactions across all retail locations and online. platforms.
Supply Chain Automation and IoT: Embodies technologies coined robotics integration, automated storage systems, and smart logistic monitoring (Walmart Inc., 2023).
Sources of Information
In this regard, the following sources were used in order to carry out the analysis:
Company’s Website: Give the needed understanding on the extent that Walmart has embraced technology in its operations (Walmart Inc., 2023).
Hoovers Profile: Technology in use, strengths and weaknesses, opportunities and threats: It contains all the information about Walmart, including a SWOT analysis—technologies in use (Hoovers, 2023).
Provide Walmart has officially declared IT risks, regulatory issues, and business exposures as outlined in the Information Form 10-K Report—Item 1.A Risk Factors (Walmart Inc., 2023).
Additional Sources:
The data-breached records document cybercrimes against Walmart or similarly positioned retailers.
News Articles: Covers emerging cyber threats and Walmart’s response strategies.
Retail IT Security: Offers an understanding of current challenges facing IT departments and systems administrators in the retail business (De Villiers Minnaar, et al 2023).
Key Information and Business Operations Needing Protection
1. Customer Data: It is well known that Walmart treats a vast number of customers’ personal payment and purchasing history info, making the company a sweet meat for hackers. This simply means that the loss of delicate information could result in identity theft, fraud, and loss of customer base (PCI Security Standards Council, 2023).
2. Supply Chain and Vendor Data: There was sensitive information such as pricing information and inventory. database of Walmart linked with its third-party suppliers and logistics network. A compromise of these systems could possibly affect its ability to provide products to its clients and carry out its financial transactions (Walmart Inc., 2023).
3. Employee Data: Payroll records, health information about employees, and records of employees at HR. The department should be protected from leakage, phishing, etc (Walmart Inc., 2023).
4. Recognitions Relating to Financial Matters: Credit card fraud, fraudulent transactions, and digital payment theft must be prevented through secure protection of the e-commerce platform as well as the POS system (Mandiant, 2023).
5. Data ownership—information concerning Walmart’s pricing structure, sales forecast, business intelligence models, and others is sensitive to industrial espionage and internal threats (Mandiant, 2023).
3. IT Security Analysis and Risk Assessment
Walmart’s Cybersecurity Needs
Since Walmart works all around the world and uses digital technologies extensively. The company needs to ensure that all customers’ transactions, supply chains, and internal information are secure. Key security requirements include:
E-commerce Security: Preventing fraud, identity theft, and unauthorized transactions.
Supply Chain Protection: Embracing and securing automated logistics and the Internet of Things devices and vendors.
Data Privacy Compliance: Managing and safeguarding the personal information of individuals as per the GDPR, PCI-DSS, and CCPA regulations to prevent the organization from fines and reputation loss.
The aim of cloud security at Walmart is to avoid unauthorized access, data leaks, node, or service misconfigurations within the company’s cloud platforms.
Analysis of Cyber Threats
External Cyber Threats
Malware/Ransomware: This may involve attackers infecting the network and encrypted systems belonging to Walmart with a ransom note for decryption.
Phishing attacks: the members of staff may be tricked into clicking web links, which in turn leads to malware and login details compromise.
DDoS Attacks: Selected botnet attacks may result in high traffic and attacks on Walmart’s online store, thus amounting to downtime and null revenue.
Insider Threats
Leman’s employees who have been granted privileges may also misuse their access or sneak out information from the company.
Laxity from workers can lead to risk introduction without the knowledge of the employees.
Supply Chain Risks
From this problem, it is clear that compromised vendors could compromise the company’s firewall and bring in backdoor vulnerabilities to Walmart's IT system.
Writers also highlighted the risks of using IoT-connected warehouses and robotic automation. systems: Based on the second threat, it can be concluded that IoT-connected warehouses and robotic automation systems can be used to disrupt operations.
Regulatory and Compliance Risks
Breaches of these laws lead to lawsuits and, in some cases, possible government fines for non-compliance with GDPR, PCI-DSS, or CCPA (PCI Security Standards Council, 2023).
Vulnerabilities in Walmart’s Technologies
Cloud Computing—Microsoft Azure: Some risks associated with data include misconfigurations, data exposure, and insider threats.
AI and Machine Learning: Takes time, is biased, is vulnerable to data poisoning attacks, adversarial AI exploits, etc.
E-commerce platforms: Payment fraud, the most common risk that affects customers, SQL injections, and other attacks such as credential stuffing.
Point-of-Sale (mPOS) Systems: mPOS malware can steal payments from the customers in the shops.
IoT and Automation: One of the possibilities of hacking smart warehouse systems lay in disruption. of the track and trace of inventories and deliveries.
Recent Cyber Incidents Affecting Walmart or the Retail Industry
Walmart Data Breach (2021): Cybercriminals managed to infiltrate the company’s internal networks, posing a great threat to customers personal details (Walmart Inc., 2023).
Target Data Breach (2013): Learn from this case when hackers used the outlets of third parties to infiltrate the retail store and cart away millions of credit card details (Walmart Inc., 2023).
Cyber-hacking: Magecart used vulnerabilities in various checkout pages to steal consumers’ card information.
On the basis of these real-life incidents, Walmart needs to act adequately in order to protect itself from such assaults.
4. Risk Profile Table: Below you can find the risk profile table, which includes 700 words, including an explanation as well as the risk profile table itself.
Introduction to the Risk Profile
Walmart Being one of the largest companies with operations worldwide, it is imperative that it has various risks involved in its cybersecurity, which include the following: Every risk found is then categorized into its impact level, which ranges from low, medium, and high levels of impact.
Risk Profile Table (15+ Identified Risks)
Risk ID |
Risk Title |
Description |
Category |
Impact Level |
001 |
Data Breach |
Unauthorized access to customer payment information. |
Technology |
High |
002 |
Insider Threat |
Employees exploiting access to steal company data. |
People |
High |
003 |
Supply Chain Attack |
Third-party vendors being compromised. |
Process |
High |
004 |
Cloud Security Misconfiguration |
Unsecured cloud storage leading to data exposure. |
Technology |
Medium |
005 |
DDoS Attack |
Cybercriminals overloading Walmart’s servers, causing downtime. |
Technology |
High |
006 |
Ransomware Infection |
Encryption of Walmart’s POS and financial systems. |
Technology |
High |
007 |
Phishing Attacks |
Employees tricked into revealing login credentials. |
People |
Medium |
008 |
IoT Device Exploits |
Automated warehouse systems compromised by attackers. |
Technology |
Medium |
009 |
PCI-DSS Non-Compliance |
Failure to meet payment security regulations. |
Process |
High |
010 |
E-commerce Fraud |
Fake transactions and chargebacks harming revenue. |
Process |
High |
011 |
AI & Algorithm Bias |
Walmart’s AI making discriminatory product recommendations. |
Technology |
Medium |
012 |
Mobile App Vulnerabilities |
Security flaws in Walmart’s digital payment system. |
Technology |
Medium |
013 |
Data Center Intrusion |
Physical security risks to Walmart’s IT infrastructure. |
People |
Medium |
014 |
Incident Response Gaps |
Delayed response to cybersecurity incidents. |
Process |
High |
015 |
Software Vulnerabilities |
Unpatched software leading to security exploits. |
Technology |
High |
Explanation of Key Risks
There are many IT security risks relevant to Walmart, which can be classified according to their exposure level and impact that can follow them. Being familiar with these risks will be helpful in designing the appropriate cybersecurity approach that will help in reducing the impact and meeting the compliance standards of the organization.
High-Priority Risks
Data Breaches—Walmart can deem itself lucky, though it is one of the largest retailers in the world. dealing with various customers, vendors, and financial information. Consecutively, if such information falls into the hands of attackers, then the company may suffer identity theft, financial fraud, regulatory fines, and, most importantly, the customer’s trust. Experiences of retail companies, such as the Target Corporation in the year 2013, also show the very disastrous effect of such an attack. Therefore, the solutions that are recommended for Walmart include the need for stronger encryption, improvement of the multi-factor authentication, and the implementation of the intrusion detection system.
Ransomware Attacks— Cybercrime, and more specifically ransomware, will be harmful to the Walmart POS. systems, databases, clouds, and their supply chain logistics. Hackers can gain access to important information and lock that information, thus paralyzing Walmart’s retail business by threatening to release sensitive information unless they are paid money. The attacks on Colonial Pipeline and Kaseya in particular show that such an incident is not only possible but highly disruptive. Some of the measures that need to be undertaken by Walmart include backup recovery solutions, endpoint security, and/or quick responses to this danger.
Insider Threats—Many individuals with privileged access to Walmart’s IT assets are bound to be a security threat because of their actions or lack of careful, responsible behavior. These are the insider threats that result from insiders’ intent in either extracting valuable information or, due to negligence, spilling a security breach. Among the protection methods, Walmart has to maintain access control. monitor the activities, and train employees on cybersecurity threats.
Supply Chain Attacks—Walmart is a company that acquires materials and services from third-party vendors, has logistics partners, and uses technology services providers. Many of which have access to or store data. Hacking into the third-party vendor can offer the attackers access to Walmart’s systems. Such an attack was the case in the SolarWinds cyber espionage attack. To minimize supply chain attacks, Walmart has to perform a security check on the vendors and ensure that they follow cybersecurity measures outlined in the approved frameworks.
Medium-Impact Risks Requiring Proactive Monitoring
Cloud Misconfigurations—In this era, Walmart deploys cloud computing more and more, and it is crucial. for Walmart to screen that data storage configurations are safe. There are losses associated with exposure to Personally Identifiable Information or specific customer data due to misconfiguration of cloud storage services. There is also a need for Walmart to consider conducting the security assessment regularly and implementing the IAM solutions based on identity.
AI and Algorithm Bias—Walmart employs the use of AI in inventory replenishment, promotions, and identifying fake reviews or sellers. Nevertheless, there can be two issues. Concerning AI and deep learning, namely, some systems are built based on certain biases or can be influenced by other biases from adversarial attacks. Pricing with a calculation based on the use of AI is one of the holy grails of markets; however, if the algorithm were to target undesired customer profiles, it would not only lead to a loss in income, but it would also be a legal problem that may damage the company’s reputation. AI in Walmart must have frequent checks for bias as well as the system for security breaches.
IoT and Warehouse Automation Risks—Walmart: These firm features IoT-enabled smart warehouses and self-service delivery. systems and robot consignment. This is because most IoT devices have poorly developed security measures and are easy to penetrate by hackers. This means that Walmart will have to patch firmware, implement capabilities of network segmentation, and regulate admissions of devices.
Using the Risk Profile for Cybersecurity Strategy
This tool can be helpful for Walmart in its risk management as it allows for setting priorities on the high-risk threats while at the same time having expertise in monitoring the identified risks. With People, Processes, and Technology, Walmart’s security team wants to offer different strategies that will mitigate the risk that is in each of these categories. Furthermore, this risk profile can be used to prioritize investment in cybersecurity technology and compliance as well as train personnel within the company.
5. Conclusion
Summary of Key Findings
The IT security threat at Walmart is immense since the company is a massive retailer, has fully implemented e-commerce, had sophisticated supply chain logistics, and accepted digital forms of payment. Huge outlets are the primary victims of cybercrimes through attacks in the payment segment, cloud systems, and supply chain management. The biggest threats that concern Walmart are data breaches, ransomware attacks, insider threats, and supply chain threats, which can lead to the loss of funds, the degradation of its reputation, and disruptions of business operations.
Walmart also has to keep track of the medium risks, like the improper configuration of cloud services, AI algorithm prejudice, cyber-security missed vulnerabilities in IoT, etc., to mitigate future threats. Concerning compliance, the GDPR, the PCI-DSS, and the CCPA continue to present a challenge to Walmart because the company must protect both data and transactions.
Impact of Risks on Business Operations
Financial repercussions—Such incidents cost thousands and millions of dollars in litigation and fines. and to correct the damages caused. For example, Target’s data breach in the year 2013 cost them 162 million US dollars in settlements. Walmart needs to spend more efforts so that such financial consequences can be averted in the future.
Reputational Damage—Arguably, violation of customer and vendor data will lead to reputational damage to Walmart in terms of lost sales, low stock price, and publicity. Ad hoc reporting of security incidents and transparency in security measures taken are important factors for any organization’s vision, particularly for the overall branding.
Operational Disruptions—refer to IT failures that affect the ability of Walmart to provide services and products to its consumers through its logistics, inventory, and online units. For instance, a ransomware attack on Walmart’s POS or e-commerce system could freeze its operation and cut transactions for millions of its customers, incurring proverbial multi-billion-dollar losses. To this end, Walmart has to undertake proper incident response and disaster recovery plans as a measure of protection.
Mitigation Strategies
Basing on the identified challenges in addressing the IT security risks in Walmart, the following mitigation strategies can and should be adopted:
Cybersecurity Investments—Walmart needs to invest in firewalls, intrusion detection and prevention, endpoint protection, and network monitoring to avoid cyber threats. AI technologies applied to threat intelligence can generate resolutions for real-time alerts on the existence of certain activities.
Employee Training & Awareness – In most cases, the employee tends to be the greatest vulnerability in the security structure of an organization. That is why Walmart should start using phishing awareness programs and strong passwords, then constantly monitor privileged access risks.
Third-Party Risk Management—Given supply chain risk, Walmart needs to demand a security assessment for its vendors. and insist on compliance with the set cybersecurity measures to minimize risks from third parties.
Incident Response & Disaster Recovery—Walmart should create an incident response program to enable proper handling. of cyber threats by a dedicated team. The actions, such as the automation of the backups of the data, the storage solutions immune to ransomware, and constant penetration tests, will ensure that Walmart is in a position to address such security breaches with efficiency and minimize the time it would take to restore the organization.
Future Considerations for Cybersecurity
Implementing Zero Trust Architecture—Every user request must be verified irrespective of them being internal or external in Walmart’s instance. This will minimize the incidence of inside attacks and unauthorized persons’ access.
Threat Identification through Artificial Intelligence—AI can be used by Walmart to identify threats such as abnormal network traffic, user behavior, and any peculiarities in the transaction activities. The use of artificial intelligence in combating fraud can help to minimize payment fraud before its occurrence (Walmart Inc., 2023).
Blockchain for Supply Chain Security – can help Walmart to promote the high level of security in the supply chain where the role of blo
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
![](https://collepals.com/wp-content/plugins/posts-import/files/order-now-with-paypal.png)