Table of Contents
Information assurance parallels the financial impact of a state. As such, when the interference of information assurance by violating the security of any organization. Number of organizations produced standards for the intangible asset evaluation that includes the International Valuation Standard (IFRS). The valuation of tangible assets determines the value of the resources in the present financial globe. As such, IFRS defines an intangible asset as “an identifiable nonmonetary asset that excludes physical substance.”
Debra Herrmann views information assurance under four security domains: physical security, personnel security, IT security and operational security (Herrmann, 2007).
Physical security refers to the protection of software, hardware and data against physical threats or prevents situations to operational services.
Personnel security consists of a variety of measures taken to reduce the likelihood and severity of intentional alteration, misappropriation, misuse and unavailability of enterprise logic and physical assets by any unauthorized people.
IT security is the intrinsic feature and function that contribute to man IT infrastructure achieving and sustaining integrity, availability, accountability, authenticity, as well as, reliability.
Operational security consists of the implementation of standard operational security that defines the frequency of the interaction between the systems, system resources and the users. The interaction achieves a known secure system as well as prevent accidental, release, destruction and misuses of system resources.
In the case of security violation, the financial aspect affects the state in question. As such, New Corp and RHM valuations determine the value of then intangible will be in the open market. As such, the organization involved in the ownership of the intangible assets released into the market. On the other hand, the availability of free or cheap tangibles into the market.
Like the previous outsourcing, cloud computing presents the capability to realize short term cost savings, that increases revenue per employee and transform the fixated cost into a variable on demand payment. Nonetheless, the benefits coma a loss of visibility, as well as, control. Nonetheless, the benefits limit itself to the capability of loss of control and visibility. Tentatively, the impact of this attribute shifts an event and security concerns, location of the information and the change in the employee loyalty from the enterprise. The dependability of the employees is paramount in determining the average returns into the market. Consequently the returns determine the final aspect of the state in question.
Despite the advantage of outsourcing business, function, it is beneficial in the realization of delivering secure functions; accountability shifted for breaches. In 20120, the UK financial services Authority find the UK branch of Zurich insurance PLC £2.275m (€2.74m) for the failing in data security failings on the outstanding supplier. As a result, it saw the loose of 46000 customers. Consequently, it results to the loss of the insurance company whilst constitutes tremendously in the present economic aspect of any aspect. FSA specifically cited Zurich failure to ensure the use of appropriate systems and controls to handle the risks. This relate the security of the data of the customer data that are as a result of outsourcing arrangements. As a result, Zurich did not appropriate information of the breach on the supply for a year. Zurich forms a vital participant in, maintaining the economy of UK. As such, the withdrawal of a major reduces the returns expected by the state.
The enactment of insurance regulation
Insurance in the traditional times centered in the product regulation, supervising the prices and terms of individual policies. Recently, the focus shifts towards a comprehensive solvency regulation. As a consequence of the recent financial crisis, solvency regulation for insurers and the banks-is set to tauten further. However, in this regard, the difference between banking and insurance must be proficiently taken into account. Therefore, both the sectors follow diverse business model, so the regulatory models should be uniformly nuanced.
The justification for the solvency regulation is to guard the policy holders against losses experienced in the case of a major sue or to prevent further regulation. Consequently, thus ensures reinforced governance that result from the two characteristics of the industry. Inversion of the production cycle that is the notion that insurance services produced and delivered after the payment of the purchase
On the other hand, it becomes difficult for the policy holders to monitor the condition and solvency of the insurers. As a result, in the case of any security breach, the insurers may handle the massive losses. Certainly, the welfare –enhances the effect of insurance on the efficient and the functioning of insurance markets as well as the insurance industry.
Fundamentally, the regulation may result to the deviation from the actuarially sound, risk based value. As a result, the participants of the market they are devoid of the true underlying risk. Additionally, the regulation may heighten the issue of moral hazard and the adverse selection result to insufficient risk mitigation. Consequently, it may endanger the solvency of insurance companies, as well as, limit the Insurability of risks. In the case of extreme situations, it may result to the breakdown of the markets.
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In retrospect, the solvency regulation should base on an assessment of the risks as insurer faces. In the case of capital requirements, based on the underlying risks it ensures sound risk management. It implies that the risks weight should not set in retrospect to political criteria thus should avoid the introduction of unwarranted potentially fateful pro-cyclicality.
Tentatively, the solvency of any insurer guarantees by the capital fusion. It is importance, therefore, to differentiate this capital fusion that is the claims of the share holders, from the reserves that cover future customer claims. Thus, the size of the necessary capital cushion relies on the quantity of the policy holders claims. Traditionally, the insurer faces the precise risk that the average banks face. To begin with m minimal maturity transformation happens. As a result, assets the allocation, based on an asset-liability matching: the maturity of the invested assets as well as the liabilities that are the expected claims of the policy holders. Secondly the technical reserves for any future customer claims are the most paramount in liability for the insurers.
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The survivability attempts to integrate dependability, as well as, security. Survivability is the capability of a system to fulfill the mission successfully, in a timely manner, in the presence of attacks, accidents or failures. Thus, it provides a quantitative basis that indicates that a system meets the security and dependability goals. A key motivation into the direction presents the fact that absolute security is an unachievable objectives as shown by the undecidability of the safety issue that relates to Harrison research. (Harrison, 1976)
The increased dependency heightens concerns that regard dependability as well as security. The interconnection, interaction, as well as, dependencies in the networked systems dramatically magnify the damages in the security violation of the systems. Thus, there exists an urgent need in ensuring a solid foundation to assist in the justification placed on these information technologies, as well as, infrastructure. As such, this paper seeks to discuss information assurance with retrospect to the contemporary enterprise, as well as understand the aspects that relate to it (Dercon, 2005).
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Information assurance is a more established discipline with a definition as typified by CESG7 as; the confidence that information system will safeguard the information they handle and will function as they need to, when they need to, under the control of legitimate users. As such, information assurance uniquely includes information security in the non-electronic form, for instance the security of hard copy documents transportation as well as storage.
Conclusively, the Zurich insurance experienced loses as a result of the fines. As a result, the setting up of proficient security plans is paramount in establishing security for the banks. On the other hands, the implementation the solvency regulation would be handy in avoiding the reduction of the returns.