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Breach Tjz

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Words 733
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Problem Statement The main problem of the case is:
• How should TJX improve and strengthen its IT security? What should be its short-term and long-term goals in-order to achieve this goal of strengthening its IT security?
Inorder to solve this problem, TJX should identify and solve the following issues:
• What are the people, work processes and technology failure points that require attention?
• What practices led to the security breach in TJX and why did such a smart andprofitable organization as TJX face such a situation?
• Was TJX a victim of ingenious cyber crooks or did it create risk by cutting corners?

Financial Losses and related remedies:
1. TJX had booked a cost of $168 million for the data breach it had announced in February 2007.
2. $21 million is projected as a possible hit for 2008.
3. Three years of credit monitoring and identity theft insurance coverage for all the customers, whose identification information was compromised.
4. Offer vouchers to customers who shopped at TJX during security violation and who had incurred certain costs as a result of intrusion.
b. Describe the industry situation Customers
1. Many customers use credit and debit cards for their shopping.
2. Customers take security issues very seriously and file class actions in the court against the company in any such critical situations. Traditional Competitors
1. Department and specialty stores. Opportunities
1. Strong customer base and loyalty.
2. Availability of feasibility of IT systems helped rapid delivery of data, facilitating quick decisions at different levels.
3. CRM technologies helped retailers in increasing their revenues through focusing onmost profitable customers. Threats
1. Security intrusions could lead to heavy loss to the company.
2. Customer

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