Boss, I Think Someone Stole Our Customer Data- Assignment # 5 Name Withheld

Strayer University

Professor Name Withheld

Project Risk Management (BUS 519)

December 11th 2011

1. Of the four (4) commentaries that follow the case, select the one (1) that you believe to be the best solution to reporting the plan to address the problem and state why.

Of the four commentaries, the one that I believe to be the best solution to address the issues faced by Flayton Electronics is that of James E. Lee. I particularly liked his recommendations because it addressed all the key areas that are necessary in a risk response plan. Lee’s recommendations are typical of contingency planning; according to Heldman (2005), contingency planning is a form of acceptance because if the risk occurs, you are willing to accept the consequences and devise a plan to deal with those consequences. He is in favor of acting with urgency by addressing the affected parties, as the longer it takes for the company to do this will make then appear less credible,
Lee also recommended that once the risk is discovered, timing is an important element in implementing a risk response plan to minimize damages. This should be in the form of a prompt public disclosure once adequate information has been gathered; brand restoration should be initiated through public statements to help improve the company’s image; toll-free hotlines should be set up to address customers concerns; loyalty incentives in the form of discounts and sales should be given to compensate those customers that still stay loyal to Flayton’s; releasing a formal public relations statement to acknowledge the breach and to assure the public that the matter is being taken care of; finally handling secondary risks that may have occurred as a result of the situation i.e. blogs, social media, faulty media reports, etc.
Lee