As part of its due diligence efforts, the M&A team has determined that the following events contributed substantially to the bankruptcy of Island Banking services.

1. Company officers and managers were able to conduct criminal activities using company IT assets without detection.

2. The company did not have a disaster recovery / business continuity plan in place. It could not restart operations due to the loss of servers and workstations (seized by law enforcement agents).

3. Storage media for servers and workstations had not been backed up to an off premises location leaving the company with no way to recover from the law enforcement seizure of storage media as evidence.

The root cause for each event listed above was determined to be: ineffective and/or missing IT security controls.

You have been asked to perform a gap analysis to assist in the identification and selection of IT security controls which could be implemented to remediate the situation (“close the gaps”). The CCISO has requested that you use the NIST Cybersecurity Framework and the NIST Security and Privacy Controls Catalog (NIST SP 800-53) as your source for IT security controls.

Choose 3 to 5 families or categories of controls (“framework functions”) which should be implemented to remediate the above deficiencies (at least one family, e.g. AU Audit and Accountability, or category, e.g. Recovery Planning, for each event). Describe how the selected controls will prevent or deter such events in the future (“close the gaps”).

Format your response as a business memorandum. For each control family or category, you should provide the following information (see Domain 2 Section 1.1.2 in CCISO):

• What it is
• What it does
• How the control performs its objective

You should have at least 5 strong paragraphs in your memo. Include citations and references (3 or more) to support your written work

Part 1: Stockholders and Management Interests

Stockholders and managers want the same thing, don’t they? Theoretically, yes, but in reality, it does not always work that way. Too often, managers’ personal goals compete with shareholder wealth maximization. Sometimes, managers pay themselves excessive salaries or bonuses that are at odds with the idea of shareholder wealth maximization. How many times have you seen in the news examples of CEO excesses or outlandish spending on events or things that definitely do not help the overall goal of stockholder wealth maximization?

To prepare for this Discussion, think about a time in your professional experience when a decision was made that seemed to benefit a specific manager or small group of managers and not the overall corporation. If you do not have professional experience directly related to this topic, research a situation in the news where this theme is demonstrated. Consider the outcomes of such an imbalance between manager and stockholder interests and research on how to avoid such a situation.

Describe the situation from either your professional experience or your research.

Explain two or more motivational tools that can aid in aligning stockholder and management interests.

Explain how your selected tools are effective in resolving potential conflicts among managers and stockholders.

Support your discussion with appropriate academically reviewed articles. Use APA format throughout.

Part 2: Application of Concepts/Time Value of Money

Review the video links below. Based on the materials presented in these videos, discuss how you will use the time value of money concepts in managerial decision making. Be specific and give examples based on your experience or research.

Time Value of Money

Bonds:

http://www.teachmefinance.com/bondvaluation.html