Reference no: EM133531723

Topic:

Cybersecurity issues in Australia have been a major issue throughout the country due to its increasing dependence on technology and interconnected systems. Being a developed nation with a good digital infrastructure, it has become a hub and an easy target for cybercriminals to exploit the network systems and data for their financial gain or to create disruption. Rapid change in digital transformation such as online transactions, increase in digital services and connected devices has also contributed to Australia's cybersecurity crimes and cyber threats. Due to this, both individuals and organizations have struggled adequately to keep secure their network systems and data.

Australia being a developed nation with great reliance on technology has become an easy target by cyber threats known as Advanced Persistent Threats (APTs) which mainly target government agencies, defense organizations and companies that possess critical and valuable intellectual property. Whereas, on the other hand some of the cyber threats are caused by individuals with authorised access to network systems and data who either accidentally or intentionally misuse or disclose sensitive information. This has caused significant cybersecurity risk in businesses and other public and government infrastructures. Due to a shortage of cybersecurity professionals in Australia, it has become very challenging for many organistions to implement robust cybersecurity measures to effectively respond to cybersecurity threats.

Mandating cybersecurity risk disclosure in Australia can have both economic benefits and risks. It increases transparency in the business sector. It helps the investors and stakeholders to make informed investments decisions as they will have access to crucial information about the organisation's cyber security practices. This will further increase trust and confidence in them. Organisations will be closely scrutinised by the government to follow robust security measures which would help in reducing cyber incidents if cybersecurity risk disclosures become mandatory. This will further help in improving risk management practices. With strong cyber security measures in place, organistionscan use mandated disclosures as a competitive advantage. It will help them attract more customers and increase business opportunities by showing their commitment to protecting the customers' data and privacy and other intellectual property.

Some of the risks associated with mandating cybersecurity risk disclosure includes compliance cost, competitive disadvantage and disclosure of sensitive information. Compliance with risk disclosure can cause an additional financial burden on businesses. Many companies can face a struggle in maintaining and implementing robust cybersecurity measures or fulfilling disclosure requirements. However, the government can play an important role by helping them with new rules and regulations which would encourage them to actively participate in seminars where adequate training is provided to manage such costs.

Another risk that the companies would face would be the competitive disadvantage. According to Professor Alex Frino, in the Australian Financial Review, he stated that a company that has faced a cybersecurity attack would lose about five per cent in market value. And an average loss of $500 million per company when the attack becomes disclosed to the public. Therefore, many organisations fear that if they are revealing their cybersecurity risk can cause great reputational damage and loss of customers. However, like previously mentioned if the government helps these organisations in placing stronger security measures, such incidents would be less prominent. Lastly, disclosing cyber security risk can also lead to unintentional disclosure of sensitive information. It is very important to keep a balance between transparency and protecting customers sensitive information.

Questions

1. Identify the specific research question to address in order to generate new insights and inform future policy relating to the issues identified as above?

2. Identify and justify one scientific research method (i.e., survey) which would be appropriate to examine your stated research question

3. Evaluate the strengths, weaknesses, relevant assumptions, and ethical considerations of the selected method in examining your stated research question

4. Propose a plan for the implementation of the selected method to maximise research quality and alleviate relevant ethical concerns.