Project risk management response to data breach and reputation damage

¶ … Progress Due Week 9 worth 200 points Note: The assignments a series papers-based case, located Student Center shell. The assignments dependent . During project life cycle, project risk reviews reports required previously identified risk

Impact of events on the project

The top two threats that had been identified as destruction of company reputation and loss of customers have occurred. These threats had been established as having a high impact on the company and their occurrence has greatly affected the company. The company relied heavily on its reputation and having this destroyed has resulted in loss of business. The company is suffering as its good name has been affected and customers are not trusting of the company. Overall sales have been affected as customers are not visiting the stores and the little that are have reservations on their purchases. Customers are wary of losing their personal data Jane E.J. Ebert, Daniel T. Gilbert, & Timothy D. Wilson, 2009()

, and with the data breach that occurred in the company, customers have lost their confidence on the safety of their information. The company should try and demonstrate to its customers that it has taken all the necessary precautions to guard against another data breach. The probability of destroying the company's reputation was set as high. This was because it was most likely going to occur. The company had developed some mitigation strategies, but the strategies were dependent on the customers' confidence and trust levels. There was little that the company could do to ensure that its reputation remained intact. Understanding that the threat would occur no matter what the company did prepared the managers for this event. The managers have to now work at rebuilding the company's reputation to ensure that the company does continue operating.

The second top threat was loss of customers, which had a probability of medium and a high impact on the company. The occurrence of this threat has affected the company as sales have dropped and the company is now incurring losses. If the number of customers reduces the company does not make enough sales to cover for its operating costs. The company is now forced to run more advertising in order to encourage customers back in the stores. Customers received direct information from the company in regards to the data breach, and the company assured the customers that necessary measures had been taken to protect their data. The company also informed the customers that they were working with the relevant authorities in order to catch the culprits. This was not enough as the company still lost a majority of its customers to the competitors. The project has been affected as the project manager has to change the project goals in order to cater for the loss of customers. The project will now have to concentrate on gaining the customers confidence and encouraging them to return to their stores. Changing of the project goals will affect the project as the project team has to change its strategies and objectives.

The top opportunity of communicating to the affected customers has taken place. The probability of this opportunity was high, and it was anticipated that its impact on the company would be high. The company had hoped that communicating to the customers would demonstrate the company cares, but the opposite occurred. The affected customers felt unsafe, and they worried about the loss of their personal information. This resulted in the loss of customers and affected the company's reputation. The advice provided to the customers was helpful as it assisted the customers in recovering and securing their credit cards. The majority if customers called the toll free line asking on what the company was doing towards mitigating the issue. This initially indicated that the customers wanted to sort out their personal information. The project team analyzed this as a positive event, but they failed to see the negative side of this opportunity. This is why the company has now been affected with the loss of customers. This event would have had a positive outcome as anticipated, but it affected the company's reputation and led to the loss of customers. The project team now has to change the project opportunities and counter the negative effects of this opportunity.

The required mitigation activities

Mitigation activities are required to provide the company with the opportunity to restore its brand and win back its customers Hillson & Simon, 2012.

The company deals with the sale of electronic equipment. In order to restore the company's brand, the project team should come up with mitigation activities like providing discounts to the affected customers. The company should also provide discounts on all their products. This will encourage customers to visit its stores and make purchases. Offering discounts will also assist in building of the company's reputation. The company should also develop advertisements that touch on people's emotions towards the company. The advertisements should be geared towards restoring the company's reputation and increasing sales. The project team should acknowledge the data breach that occurred and indicate what the company has done to ensure it does not occur again. This will hopefully demonstrate to the customers that the company has secured its systems in order to guard against another data breach.

The mitigation activities will counter the effects of the top two threats and the top opportunity. The activities are required because they will offer the company with an opportunity to rebuild its name and encourage customers to trust the company. Without any mitigation strategies, the company will spiral straight to the ground. The project team should work towards mitigating the effects of the threats and guard against the threats impact increasing. Reducing the effects of the threats will provide the company with an opportunity to restore its reputation and increase sales. Sales would only be increased if the company is able to encourage customers to visit its stores. The project team could also provide after sales services to the new customers and existing customers. The after sales services would be geared towards brand reputation and increasing customer loyalty. Customers will be more willing to take their electronics for repairs where they bought them, and having a good customer service department is vital to the company at the moment.

Provide assurance to customers on the security of their data

The changes to the risk register are in line with the occurrence of the top two threats. In order to mitigate against the destruction of the company's reputation, the team should now concentrate on providing information to the affected customers. This will demonstrate to the customers that the company has secured its systems, and they are safe Iversen, Mathiassen, & Nielsen, 2004.

The after sales service and repairs will encourage customers to contact the company stores for repairs and services of their equipment. This will assist in building the company's reputation. The threat of losing customers now has a probability of high. This is because it is now more likely to occur. To mitigate against this threat, the project team will develop discounts that would entice existing and new customers. Having promotions on all the products will also encourage customer to visit the store and make purchases. All staff should be trained in customer service. This will ensure that the staffs know how to deal with customers no matter the situation.