BAM4014 Academic and Professional Skills Assignment Sample

Introduction of Academic and Professional Skills Assignment

In modern era, the uses of technologies within the companies are rapidly increasing in order to automate tasks and provide better services and fast delivery of products to the customers. However, with benefits, emerging technologies are also posing the risk of cybercrime which negatively influences the overall operations and efficiency. Furthermore, with the technological advancements, most of the companies of all sectors are facing challenges relevant to the cyber-attacks which lost the trusts of customers and damage reputation (Kemp et al, 2023). Cybercrime impacts companies of all sectors by losing customer's trust, damaging reputation and disrupt the overall operation. Apart from this, the current report will be based on influence of cybercrime on the overall operation of leading company, operating within finance sector, namely HSBC. It is one of the popular universal bank and financial service organization. Its headquarter is situated in London, UK and it founded in 1865 (HSBC, 2024). In 2024, this organization is facing the issue of cyber-attack which losing customers and profitability. Additionally, this report will identify and analyse the impact of cybercrime on the finance industry with a focus on cyber awareness campaigns & training programs, security operations centre (SOC) and installing firewalls. This report will also make three recommendations as to how HSBC should respond to crime.

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Influence of Cybercrime on Operation of Hsbc

To automate the process and increase the efficiency of overall operation, companies are highly depending upon computers and emerging technologies. HSBC is one of leading finance company of the UK and it also makes significant investment in technologies in order to provide high-quality and fast finance services to the customers from which they are likely to retain for long duration. However, from emerging technologies, HSBC faced issue of cybercrime in which the personal information and data of consumers are lost or theft that leads to losing trust and suffered from huge losses. In the month of April and May, HSBC faced issue of cyber-attack which directly impacts its success and reputation. In April 2024, HSBC fell victim to data breach that happened within the infrastructure of direct contractor who is also working for another bank i.e. HSBC. Additionally, the contractor is sending repercussions through sector and raising issues about the security of the complex financial information and data (Foresiet, 2024). HSBC was increasingly battered by distributed denial-of-service (DDoS) attacks. This cyberattack designed to devastate the network infrastructure and disrupt the online services. The key aim of the cyber-attack of HSBC was to flood the servers with extreme internet traffic which cause complete outages and slowdowns.

Furthermore, this cyber-security breach attributed HSBC on dark web by disclosing an accumulation of significant information and data, encompassing certificate files, databases files, SQL files, source code and other files. The consequences of this breach have massive impact on the overall operation and process of HSBC because it losing the customer's records, sensitive financial information and proprietary baking technology. Moreover, this breach underscores the obstinate threat which is posed by the cybercriminals. Apart from this, in May 2024 HSBC also experienced an intermittent disruption to its mobile banking and online services such as credit cards, debit cards, ATMs, digital wallet etc (Reuters, 2024).

Impact of Cybercrime on Financial Performance

The cybercrime can have massive financial influence on the chosen business which results in reputation damage, loss of intellectual property, legal repercussion etc. The financial circumstances can be disturbing which leads to compromise of intellectual property, depletion of funds and discover of confidential customer data (Gulyas and Kiss, 2023). Cybercrimes of HSBC exposed confidential and personal information and data of customers which cause permanent damage its reputation which results in losing loyal customers, reduce market shares and decrease revenue. Along with this, data breaches can results to fines, legal actions and penalties particularly in the heavily regulated sectors like finance. Cybercrimes such as data breaches, financial frauds, ransomware attacks etc., are directly impacting the financial performance of the organizations (Beaman et al, 2021). HSBC faced the issue of data breaches due to loss of sensitive and personal information of the customers. From this, selected organizations face fines and penalties for legal liabilities. Security breaches can outcomes in several financial losses for the companies. This is consisting of costs of mitigating the breach such as recruiting the experts to investigate and repair the damage as well as settling legal claims and notifying the customers. Cyber-attack also leads to loss of revenue and damaging reputational due to leaked of customer's data. Additionally, due to this cybercrime HSBC also faced hefty fines from the regulators of the government if they fail to fulfil the requirements of the government.

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Influence of Cyber-Attack on Reputation of Hsbc

Reputational damage is another issue that faced by HSBC due to its cybercrimes. Activities related to this have massively impact the image of customers and also erode the trust of consumers which leads to decrease profitability, reduce market share and overall turnover (Hasbullah, 2022). The cyber-attack of chosen organization compromised with the data of consumers which leads to negative allegation of its reputation which results in losing their confidence and revelation to potential legal actions. Cybercrime leaves the organizations in distrusted and vulnerable situation from which they suffered from huge losses. The news of HSBC's cyber-attack is spread quickly which directly influence the perception of publics to avail the financial services. Additionally, false and negative publicity can discourage investors, customers and partners from which they are less likely to make investment which eventually negatively influence on profitability and success. Furthermore, reputational damage can lead to loss of public trust that leads to negative influence on the overall efficiency and operation.

Additionally, the cyber-attack of HSBC also disrupt its overall operation which results in decrease efficiency and loss of customer's trust. Due to security issues companies are facing the problems of operational downtime which directly impacts the computer system which leads to data loss and system crashes (Farahbod, Shayo and Varzandeh, 2020). Unauthorized admittance to critical system is disrupting the overall process and operation as well as compromising sensitive information. Aside from this, due to cyber-attacks, HSBC also faced issue related to legal and regulatory consequences which directly impacts its profitability and growth. Cyber-attack carries regulatory and legal implications for the companies which leads to legal actions and severe penalties. Key consideration encompasses keeping compliant with the laws related to data protection and executing measure of robust security in order to protect the sensitive and personal information of the customers (Perera et al, 2022).

For the cyber-attack or disrupting the overall operations, HSBC paid fine of 57 million pound which reduces its profitability or revenue (Reuters, 2024). Additionally, due to cybercrime HSBC also faced challenge related to theft of intellectual property which damage its reputation and decrease the profitability as well as restrict it to gain competitive advantage over competitors. Stolen intellectual property of HSBC provides unfair advantage to its competitors to gain competitive edge which results in decrease profitability, loss of market share and diminished innovation. Theft of intellectual property harmed the reputation of chosen business from which its stakeholders may questions towards its competencies to safeguard the valuable assets.

Cybercrime of HSBC also influenced the trust and loyalty of the customers which leads to reduce revenue. Organizations which are failed to protect the personal information of the customers can results in customers in seeking the information and damaging long-term loyalty (Sviatun et al, 2021). In addition, the cybercriminals are gain unauthorized admittance to customer accounts which eventually adversely influence on the customer's satisfaction and experience. For gaining the trust of the customers, it is important for the companies to prioritize their satisfaction and providing secured experience to them. Apart from this, due to cyber threat, HSBC is having the risks of losing the data resulting from failure of technologies or malicious activities from internal and external threats. Business is seeking to constantly monitor the changes to the threat landscape encompassing those arising from ongoing macroeconomics and geographical events as well as it directly impacts the third party management (Gulyas and Kiss, 2023). For mitigating the cyber-attack HSBC is operating programme of continuous improvement in order to protect the technology operation and counter heightened and fast-evolving cyber threat environment.

Apart from this, to mitigate all the challenges and reduce the cases of cyber-attacks, companies are required to emphasis on cyber security. It is considered as one of the critical method of protecting systems, data and networks from cyber-attacks (Mostafa, 2022). Emphasis on cyber-security can be beneficial for HSBC because aids in safeguarding the personal information as well as also ensure whether its business operation operates smoothly or not. Security helps in protecting customers and organization's data, ensure business continuity and regulatory compliance as well as cost reduction and reputation management (Lloyd, 2020). Additionally, protecting the personal data is considered as one of the common and biggest advantage of cyber-security. With online transactions and online platforms, sensitive and personal information like financial details and addresses etc., are increasingly vulnerable to theft. Strong measures related to security helps in safeguarding the personal data of customers from unauthorized admittance.

Additionally, effective security strategy is crucial for safeguarding the reputation and brand. Breaches of data can severely damage the perception of the public which results in loss the trust of customers and partners (Kosutic and Pigni, 2022). By emphasis on cyber-security measures, HSBC can maintain the positive image and represent a commitment to protect the information of the clients. Concrete reputation in cyber security helps in attracting wide range of customers as well as also represents that business is operating its functions in reliable manner and takes data security seriously. Adoption of security measures is beneficial for the organizations because it assist in improving productivity. Implementation of effective measures related to cyber- security is beneficial for the companies because it helps in improving the productivity by safeguarding downtime which are caused by cyber-attacks. Cyber threats can disrupt the overall operations and reduce the efficiency of the employees which eventually negatively impacts on the overall growth and development (Ogborigbo et al, 2024). With robust cybe-security, selected business can eliminate the disruptions related to cyber threats which encourage the team members to emphasis on core tasks without worrying about challenges relevant to security. This protection helps in ensuring continue and smooth operation across departments.

Moreover, cyber-security also helps in managing the data of customers and companies by ensuring whether sensitive or personal information is accessed or stored securely and properly or not. By developing protocols for data storage, encryption and retrieval, organizations can safeguard their assets from the breaches.

Conclusion

In the end of report, it has been conclude that¸ HSBC is continuously suffered from cyber-attacks which impacts its overall operation, customer's trusts and position in the market. In April and May 2024, HSBC faced issue of cybercrime which leads to theft of personal or sensitive information of the customers. It has been analysed that, cybercrime has massive impact on the overall operation due to financial loss, reputational damage, theft of intellectual property, loss of customer's trust etc. From this, the customers are less likely to avail the banking services and restrict to gain competitive advantage over rivalries which negatively influence on its profitability and success.

To overcome all the challenges relevant to cybercrime, HSBC can need emphasis on adopting cyber-security measures because it aids in protecting personal data of consumers and business reputation as well as enhance productivity, improve data management, maintain credibility and trust. Apart from this, to respond cyber threats HSBC can need to conduct cyber awareness program and training sessions, collaborate with security operations centre (SOC) and install firewalls. Adoption of these strategies will be beneficial for selected organization because it helps in protecting the data and information of the customers as well as networks.

Recommendation 1: Cyber awareness campaigns & training programs

To overcome cyber-attacks, HSBC should need to emphasis on running cyber awareness campaigns and training programs on regular basis in order to provide knowledge and skills of the employees regarding cyber-security issues as well as knows about how to report incidents. Conducting the awareness campaign will be beneficial for the chosen business because it helps in protecting data, developing security culture, improving incident response, reducing human error and building trust which ultimately positively impacts on the overall operation. Cyber training helps in providing knowledge to the employee regarding way of preventing breaches of data and protecting the personal information such as trade secrets, customer data and financial information (Chaudhary Gkioulos and Katsikas, 2022). Additionally, to overcome cyber-attacks it should be important for HSBC to provide training to its workforces because it helps in creating the culture of security-focuses where they are proactive in safeguarding the personal information. Training helps the employees for preparing, responding and detecting the incidents related to security which helps in managing the operation effectively that drive growth and development. This can assist in reducing the influence of security breaches and maintain the continuity of the business. Cyber awareness program helps in developing the trust with the stakeholders and customers by representing that companies is committed to protect and safeguard the data and information.

Recommendation 2: Security operations centre (SOC)

HSBC should need to collaborate with the security operations centre (SOC) in order to respond towards the cyber threats. SOC is a team of IT security professionals that assist in protecting the companies by observing, detecting, evaluating and investigating the cyber-attacks. Collaboration with this centre will be beneficial for HSBC because it helps in enhancing its response, detection and prevention competencies by coordinating and unifying all the operations and technologies relevant to the cyber security which leads to enhance financial performance. SOC facilitates continuous monitoring 24/7 in order to defend and protect the business environment of the companies from cyber-attacks (Jalalvand et al, 2024). Generally, this centre has experienced team of SOC analyst and threat hunters and they have professional knowledge to determine and counter the techniques of common attacks to reduce circumstances. Apart from this, collaboration with this can be beneficial for HSBC because it helps in preventing or overcoming losses from cyber-attacks and data breaches which helps in increase revenue and profitbaility. Safeguarding of threats results in greater return on the investment in relation to the costs of SOC service. To respond the cyber-attacks, SOC make use of emerging and latest solutions and technologies. This helps HSBC in tracking the evolving threat setting and not suffered from vulnerabilities because of out-dated technologies.

Recommendation 3: Installation of firewalls

In present times, cyber-security threats become more sophisticated and daily hackers are coming with new ideas to access the data. So, to protect the network and safeguarding the consumer's data HSBC should need to emphasis on installing firewalls. It is reliable system that helps the companies to safeguard from brute attacks and security incidents from causing irreversible damage which aids in enhance its reputation. Installation of this system will be beneficial for selected business because it helps in monitoring the network traffic to determine the suspicious activities that compromise the integrity of data. Additionally, the key role of firewalls is overseeing all the packets of data that negotiate a network to reduce the chances of increasing the cyber-attacks. Adoption of this system will be beneficial for selected business because it helps in protecting its network from malicious content, cybercrimes and unauthorized admittance which aids in increase brand reputation over competitors in the market. This system will also help in blocking malware and viruses such as Trojans to protect the sensitive information and data of consumers (Jingyao et al, 2020). It also enable privacy of data by creating barrier relevant to it between internet and local networks. Firewalls also helps in responding towards the cybercrime by preventing virus infiltration, blocking unauthorized access, upholding data privacy and supporting regulatory compliance which ultimately positively impacts on the overall efficiency and success of companies.

REFERENCES

Books and Journals

• Beaman, C., Barkworth, A., Akande, T.D., Hakak, S. and Khan, M.K., 2021. Ransomware: Recent advances, analysis, challenges and future research directions.Computers & security,111, p.102490.
  Hasbullah, M.A., 2022. Identifying the Effects of Cybercrime on Business Laws: Implications for Businesses and Consumers.International Journal of Cyber Criminology,16(2), pp.119-130.
• Chaudhary, S., Gkioulos, V. and Katsikas, S., 2022. Developing metrics to assess the effectiveness of cybersecurity awareness program.Journal of Cybersecurity,8(1), p.tyac006.
• Farahbod, K., Shayo, C. and Varzandeh, J., 2020. Cybersecurity indices and cybercrime annual loss and economic impacts.Journal of Business and Behavioral Sciences,32(1), pp.63-71.
• Gulyas, O. and Kiss, G., 2023. Impact of cyber-attacks on the financial institutions.Procedia Computer Science,219, pp.84-90.
• Jalalvand, F., Baruwal Chhetri, M., Nepal, S. and Paris, C., 2024. Alert Prioritisation in Security Operations Centres: A Systematic Survey on Criteria and Methods.ACM Computing Surveys.
• Jingyao, S., Chandel, S., Yunnan, Y., Jingji, Z. and Zhipeng, Z., 2020. Securing a network: how effective using firewalls and VPNs are?. InAdvances in Information and Communication: Proceedings of the 2019 Future of Information and Communication Conference (FICC), Volume 2(pp. 1050-1068). Springer International Publishing.
• Kemp, S., Buil-Gil, D., Miró-Llinares, F. and Lord, N., 2023. When do businesses report cybercrime? Findings from a UK study.Criminology & Criminal Justice,23(3), pp.468-489.
• Kosutic, D. and Pigni, F., 2022. Cybersecurity: investing for competitive outcomes.Journal of Business Strategy,43(1), pp.28-36.
• Lloyd, G., 2020. The business benefits of cyber security for SMEs.Computer fraud & security,2020(2), pp.14-17.
• Mostafa, A.A., 2022. Cyber Crime in Business.International Journal of Academic Research in Business and Social Sciences.,12(6), pp.962-972.
• Ogborigbo, J.C., Sobowale, O.S., Amienwalen, E.I., Owoade, Y., Samson, A.T., Egerson, J., Ogborigbo, J.C., Sobowale, O.S., Amienwalen, E.I., Owoade, Y. and Samson, A.T., 2024. Strategic integration of cyber security in business intelligence systems for data protection and competitive advantage.World Journal of Advanced Research and Reviews,23(1), pp.081-096.
• Perera, S., Jin, X., Maurushat, A. and Opoku, D.G.J., 2022, March. Factors affecting reputational damage to organisations due to cyberattacks. InInformatics(Vol. 9, No. 1, p. 28). MDPI.
• Sviatun, O.V., Goncharuk, O.V., Roman, C., Kuzmenko, O. and Kozych, I.V., 2021. Combating cybercrime: economic and legal aspects.WSEAS Transactions on Business and Economics,18, pp.751-762.
• Online
• Foresiet,2024. HSBC and Barclays Face Data Breach, Confidential Information Leaked. Online. Available through: < https://foresiet.com/blog/hsbc-and-barclays-face-data-breach-confidential-information-leaked>. [Accessed on: 6^th Nov, 2024].
• HSBC, 2024. About us. Online. Accessed through:< https://www.hsbc.com/who-we-are>
• Reuters, 2024. HSBC UK says all services are functional after disruption. Online. Available through: https://www.reuters.com/business/finance/hsbc-uk-says-mobile-online-banking-facing-disruption-2024-05-04/ . [Accessed on: 6^th Nov, 2024].
• Reuters, 2024. HSBC's bumper UK fine is deserved, and disturbing. Online. Available through :< https://www.reuters.com/breakingviews/hsbcs-bumper-uk-fine-is-deserved-disturbing-2024-01-30/>. [Accessed on: 6^th Nov, 2024].