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Strengthening Cybersecurity and Rebuilding Trust at Laguna Productions Alfonso Davis Professor A. Richards Business Law and Ethics March 17 Background of Laguna Productions  Laguna Productions is a company that grew fast, opening an office in New York.  They make money by creating content that many people like to watch or listen to.  Until now, they failed to spend extra money to protect their computer systems from hackers.  Due to their large following and success, they caught the attention of a hacking group called NY Rebels. Introduction to the Issue  Laguna Productions was attacked by a group named NY Rebels. This caused a huge problem for the company.  Private info of around 10,000 people was stolen and shared online.  This info has been seen more than a million times on the dark web.  The company did not spend $1 million to protect against such attacks  Now, everyone at Laguna Productions is very worried about the trouble this might cause. Common Law Theories of Liability  People affected might use the negligence theory. This means they think Laguna did not do enough to protect their info.  Breach of confidentiality is another theory. This is about breaking the promise to keep info safe (Kruikemeier et al., 2019).  Victims could also claim invasion of privacy, meaning their personal information was wrongly Used  Laguna may be liable for claims of emotional distress, meaning the hack caused a lot of stress and upset of People effected.  Lastly, victims might say Laguna did not tell them soon enough about the hack. Statutory Liabilities in California and New York  In California, companies must protect personal info. If they don’t, they can be in big trouble.  California’s law also says people must be told quickly if their info is stolen.  In New York, similar rules exist.  Companies must have good security to protect personal information (Tawalbeh et al., 2020).  New York also has strict rules about telling victims of a data breach quickly.  Both states allow people to sue companies if they do not follow these rules. Ethical Actions to Mitigate Harm  Laguna Productions should say sorry to everyone affected.  This shows they care.  They could offer free services to help protect the victims’ info in the future.  Laguna should also give clear, simple instructions on what victims can do next.  It’s important for Laguna to keep talking to the victims.  They should update them on what’s being done.  Lastly, Laguna could support laws or efforts to protect people’s info better in the future. How to Address the Current Problem  Laguna should work with experts to close the hole the hackers used. This means fixing the weaknesses in their system.  They need to find out exactly what info was stolen and tell the affected people what happened.  Laguna should talk to the police and cyber security experts to try to catch the hackers.  Offering help like credit monitoring to those affected can make things a bit better for them.  It’s also smart for Laguna to learn from this mistake and train their employees on how to keep information safe. Plans to Prevent Future Data Breaches  Investing in stronger security systems is a must. This means spending the money they didn’t spend before.  Regular checks of their security to find and fix problems before hackers can use them.  Teaching everyone at Laguna, from top to bottom, how to spot and stop security risks.  Creating a quick response plan for any future hacks so they can act fast to protect info.  Working with other companies and security experts to stay ahead of new hacking methods (Alhayani et al., 2021).  Laguna should make a promise to always put protecting personal info at the top of their list. Rebuilding Trust with Customers and Investors  Be open and honest about what happened and what Laguna is doing to fix it.  Show clear changes and improvements in security to prove things will be different.  Regular updates on security improvements can help keep everyone informed.  Engage with customers and investors through meetings or online sessions to answer their questions.  Create a better customer service team dedicated to dealing with concerns about privacy and security. The Role of Leadership in Crisis Management  The CEO and Board must lead by example, showing they are serious about fixing the problem.  They should be involved in developing the new security plan and make sure it’s carried out.  The leaders should also talk to employees, boosting morale and emphasizing the importance of security.  It’s key for leaders to communicate openly with the public, showing they are taking responsibility.  Lastly, they should ensure Laguna learns from this crisis to improve its resilience against future threats. Conclusion and Recommendation  This hack was a wake-up call for Laguna Productions. It showed the need for better security.  By taking strong, ethical steps, Laguna can help fix the harm done and protect against future attacks.  It’s important for everyone at Laguna, especially the leaders, to work together on making these changes.  Improving security and being open with those affected will help rebuild trust.  Let’s all commit to making Laguna Productions a safer, more secure place for everyone’s information References  Alhayani, B., Abbas, S. T., Khutar, D. Z., & Mohammed, H. J. (2021). Best ways computation intelligent of face cyber attacks. Materials Today: Proceedings, 26-31.  Kruikemeier, S., Boerman, S. C., & Bol, N. (2020). Breaching the contract? Using social contract theory to explain individuals’ online behavior to safeguard privacy. Media Psychology, 23(2), 269-292.  Tawalbeh, L. A., Muheidat, F., Tawalbeh, M., & Quwaider, M. (2020). IoT Privacy and security: Challenges and solutions. Applied Sciences, 10(12), 4102.

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