This Document Contains Chapters 11 to 14 Chapter Extension 11 Enterprise Social Networks and Knowledge Management 1) Which of the following is true of social media (SM)? A) Using social media is an old-style, organization-centered technique. B) Social media is used for sending messages and attempts to manage, influence, and control customers and partners. C) Organizations know social media is popular and can be strategically beneficial. D) Social media markets to employees and not customers. Answer: C 2) Which of the following is the first step in developing a social media information system (SMIS)? A) Define what the organization wants to achieve with social media. B) Identify metrics that will indicate whether an organization has achieved its goals. C) Maximize metrics like conversion rate and bounce rate. D) Identify the organization's target audience. Answer: A 3) ___________ indicate whether an organization has achieved its goals. A) Vanity metrics B) Cyclomatic complexities C) Halstead complexities D) Success metrics Answer: D 4) A(n) ___________ is the percent of people who achieve a certain result for an organization. A) bounce rate B) exit rate C) exchange rate D) conversion rate Answer: D 5) A(n) ___________ refers to the percent of people who visit a Web site and then immediately leave. A) bounce rate B) exit rate C) exchange rate D) conversion rate Answer: A 6) Which of the following statements is true of identifying an organization's target audience in a social media information system (SMIS)? A) Every social media user is a target audience. B) Only teenagers form the target audience. C) Identifying a target audience helps organizations focus its marketing efforts. D) Once a target audience is identified, any social media platform can be used. Answer: C 7) ___________ is performed to identify the strengths and weaknesses in an opponent's use of social media in a social media information system (SMIS). A) Factor analysis B) Risk analysis C) Win-loss analytics D) Competitive analysis Answer: D 8) All companies have teams who are trained to use social media (SM). Answer: False 9) Depending on an organization's strategy, it will use different social media platforms in different ways. Answer: True 10) Success metrics are also known as key performance indicators (KPIs). Answer: True 11) Metrics that sound good but do not improve one's decision making are commonly referred to as vanity metrics. Answer: True 12) Conversion rate refers to the percent of people that visit a Web site and then immediately leave. Answer: False 13) Explain briefly how organizations view a social media information system (SMIS). Answer: Many companies are still unsure how to use social media (SM). They want to use it, but they're not quite sure how to do so in a way that facilitates their existing competitive strategy. Competitive strategies can focus on being the cost leader or on differentiating one's products from one's competition. An organization can then employ this strategy across an entire industry, or it can focus on a particular segment within that industry. Depending on an organization's strategy, it will use different SM platforms in different ways. Again, the key is the premeditated alignment of the social media information system (SMIS) with the organization's chosen strategy. Organizations know SM is popular and can be strategically beneficial. 14) A(n) ___________ is a software platform that uses social media to facilitate cooperative work of people within an organization. A) enterprise social network B) content management system C) earned value management D) expert system Answer: A 15) A(n) ___________ refers to a content structure employed by Enterprise social networks (ESNs) that emerges from the processing of many user tags. A) heteronomy B) agronomy C) folksonomy D) cytotaxonomy Answer: C 16) Enterprise social networks (ESNs) use outward-facing social media platforms like Facebook and Twitter. Answer: False 17) Using enterprise social networks (ESNs), employees can bypass managers and post ideas directly for the CEO to read. Answer: True 18) What is an enterprise social network (ESN)? Answer: An enterprise social network (ESN) is a software platform that uses social media (SM) to facilitate cooperative work of people within an organization. Instead of using outward-facing SM platforms like Facebook and Twitter, ESNs use specialized enterprise social software designed to be employed inside the organization. These applications may incorporate the same functionality used by traditional social media, including blogs, microblogs, status updates, image and video sharing, personal sites, and wikis. The primary goal of ESNs is to improve communication, collaboration, knowledge sharing, problem solving, and decision making within organizations. 19) The process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need it is called ___________. A) knowledge management B) value engineering C) knowledge engineering D) earned value management Answer: A 20) Knowledge management can improve the effectiveness and efficiency of a process. Answer: True 21) Expert systems came into existence long after the use of social media and the Internet. Answer: False 22) What is knowledge management? How does it benefit an organization? Answer: Knowledge management (KM) is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need it. KM existed in the days before social media. KM benefits organizations in two fundamental ways: 1) It improves process quality. 2) It increases team strength. 23) ___________ are rule-based systems that encode human knowledge in the form of If/Then rules. A) Document management systems B) Expert systems C) Content management systems D) Enterprise resource planning systems Answer: B 24) Which of the following is a disadvantage of expert systems? A) They cannot be updated to meet the changes in technology. B) They cannot consist of more than one If/Then rule. C) They are difficult to develop and maintain. D) The system's knowledge is available only to high-skilled experts. Answer: C 25) Which of the following statements is true of expert systems? A) Small changes in the rules can cause unexpected outcomes. B) The programs that process a set of rules are called expert systems codes. C) They are easy to maintain because of their rule-based nature. D) They require very few labor hours from both experts and designers. Answer: A 26) Expert systems are easy to maintain. Answer: False 27) What are expert systems? Answer: Expert systems are rule-based systems that encode human knowledge in the form of If/Then rules. Such rules are statements that specify if a particular condition exists, then some action should be taken. A real-world expert system may consist of hundreds, if not thousands, of rules. The programs that process a set of rules are called expert systems shells. Typically, the shell processes rules until no value changes. At that point, the values of all the variables are reported as results. To create the system of rules, the expert system development team interviews human experts in the domain of interest. Expert systems are difficult and expensive to develop and maintain. 28) ___________ are information systems that support the management and delivery of documents and other expressions of employee knowledge. A) Document management systems B) Enterprise resource systems C) Expert systems D) Content management systems Answer: D 29) Which of the following is a challenge for content management systems (CMS)? A) Content databases cannot hold large numbers of documents. B) Documents exist in isolation from each other. C) The systems must maintain linkages among documents. D) CMS content is static. Answer: C 30) Which of the following statements is true of the content management application alternatives? A) In-house systems are far less expensive to maintain than off-the-shelf products. B) Organizations develop an in-house system to track machine maintenance procedures. C) Custom content management applications are economical to develop and maintain. D) Off-the-shelf products have considerably less functionality than most in-house systems. Answer: B 31) The largest collection of documents ever assembled exists on the Internet, and the world's best known document search engine is ___________. A) Yahoo B) Bing C) Google D) AltaVista Answer: C 32) Content management systems cannot store graphics. Answer: False 33) Documents in content management systems exist in isolation from each other. Answer: False 34) Document contents in content management systems are perishable. Answer: True 35) Custom content management applications are expensive to develop and maintain. Answer: True 36) In-house systems have considerably more functionality than off-the-shelf products and are far less expensive to maintain. Answer: False 37) Software is the only component present in a content management system. Answer: False 38) It is often easier for an employee of an organization to find a document of the organization using Google than using an in-house search engine. Answer: True 39) What are content management systems? Define the challenges of content management. Answer: Content management systems (CMS) are information systems that support the management and delivery of documents and other expressions of employee knowledge. Typical users of content management systems are companies that sell complicated products and want to share their knowledge of those products with employees and customers. Content management systems face serious challenges. First, most content databases are huge; some have thousands of individual documents, pages, and graphics. The second challenge is that CMS content is dynamic. Another complication for content management systems is that documents do not exist in isolation from each other. Documents refer to one another, and multiple documents may refer to the same product or procedure. When one of them changes, others must change as well. To manage these connections, content management systems must maintain linkages among documents so that content dependencies are known and used to maintain document consistency. A fourth complication is that document contents are perishable. Documents become obsolete and need to be altered, removed, or replaced. 40) What are the alternatives to content management applications? Answer: Three common alternatives for content management applications are: 1) In-house custom applications: In the past, organizations developed their own in-house content management applications. A customer support department, for example, might develop in-house database applications to track customer problems and their resolution. Operations might develop an in-house system to track machine maintenance procedures. Like all custom applications, however, custom content management applications are expensive to develop and maintain. 2) Off-the-shelf applications: Because of the expense of custom applications, many organizations today use off-the-shelf software. Some organizations choose vertical market off-the-shelf applications. Off-the-shelf products have considerably more functionality than most in-house systems and they are far less expensive to maintain. 3) Public search engines: The largest collection of documents ever assembled exists on the Internet, and the world's best-known document search engine is Google. Because Google searches through all public sites of all organizations, it is usually the fastest and easiest way to find a public document. This often is true even within an organization. Chapter Extension 12 Database Marketing 1) Which of the following marketing techniques refers to the application of business intelligence systems to the planning and execution of marketing programs? A) ambush marketing B) viral marketing C) database marketing D) guerrilla marketing Answer: C 2) Databases are not a key component of database marketing. Answer: False 3) Data mining techniques are essential for database marketing. Answer: True 4) What is database marketing? Answer: Database marketing is the application of business intelligence systems to the planning, execution, and assessment of marketing programs. Databases are a key component of database marketing, but data mining techniques are also very important. 5) ___________ is a way of analyzing and ranking customers according to their purchasing patterns. A) Composite forecast B) RFM analysis C) Regression analysis D) Delphi technique Answer: B 6) Which of the following is the first step in the process of producing an RFM score? A) dividing the customers according to the amount spent on purchases B) sorting customer purchase records based on the purchase frequency C) sorting customer purchase records by the date of most recent purchase D) dividing customers into two groups based on the gender and giving each group a score Answer: C 7) In RFM analysis, an R score of 5 shows that ___________. A) a customer has not made any recent purchases B) a customer has bought the most expensive items C) a customer has frequently ordered expensive items D) a customer has purchased the least expensive items Answer: A 8) In RFM analysis, an F score of 1 shows that ___________. A) a customer has bought the least expensive items B) a customer has frequently placed orders C) a customer has always bought the most expensive items D) a customer has rarely made a purchase Answer: B 9) In RFM analysis, customers who have bought the least expensive items are indicated by an M score of ___________. A) 2 B) 5 C) 1 D) 4 Answer: B 10) Cheryl Inc., a leading cosmetics manufacturer, wants to identify its most valued customers. Each customer is assigned an RFM score based on their purchasing patterns. One of their valued customers has an RFM score of 545. In this case, the ideal action for Cheryl's sales team is to ___________. A) up-sell more expensive goods to this customer B) contact this customer immediately C) not waste any time on this customer D) set up an automated contact system for this customer Answer: C 11) Which of the following RFM scores refers to the most valuable customer? A) 111 B) 555 C) 123 D) 333 Answer: A 12) The RFM score is obtained by ranking customers based on the positive feedback for a product after purchasing it. Answer: False 13) RFM analysis is a complex technique that is difficult to implement. Answer: False 14) A high F score denotes that the customer has bought an expensive item recently. Answer: False 15) Customers with an RFM score of 555 are highly valued by organizations. Answer: False 16) The frequency of customer purchases is not a determining factor for RFM scores. Answer: False 17) RFM analysis can be a useful tool to determine the best customers based on the frequency of their purchases. Answer: True 18) RFM scores are basically beneficial to salespeople, as it gives a clear picture of a customer's buying pattern. Answer: True 19) A reporting system that generates RFM data can be automated. Answer: True 20) Describe the process of conducting RFM analysis. Answer: RFM analysis is a way of analyzing and ranking customers according to their purchasing patterns. It is a simple technique that considers how recently (R) a customer has ordered, how frequently (F) a customer orders, and how much money (M) the customer spends per order. To produce an RFM score, the program first sorts customer purchase records by the date of most recent (R) purchase. In a common form of this analysis, the program then divides the customers into five groups and gives customers in each group a score of 1 to 5. The 20 percent of the customers having the most recent orders are given an R score of 1, the 20 percent of the customers having the next most recent orders are given an R score of 2, and the last 20 percent are given an R score of 5. The program then re-sorts the customers on the basis of how frequently they order. The 20 percent of the customers who order most frequently are given an F score of 1, the next 20 percent of most frequently ordering customers are given a score of 2, and the least frequently ordering customers are given an F score of 5. Finally, the program sorts the customers again according to the amount spent on their orders. The 20 percent who have ordered the most expensive items are given an M score of 1, the next 20 percent are given an M score of 2, and the 20 percent who spend the least are given an M score of 5. 21) Which of the following is a data mining technique for determining sales patterns? A) RFM analysis B) market-basket analysis C) composite analysis D) regression analysis Answer: B 22) In marketing transactions, the fact that customers who buy product X also buy product Y creates a ___________ opportunity. A) relationship selling B) cross-selling C) value added selling D) persuasive selling Answer: B 23) In market-basket terminology, the term used to represent the probability that two items will be purchased together is ___________. A) confidence B) support C) cohesion D) assurance Answer: B 24) In market-basket terminology, a conditional probability estimate is referred to as ___________. A) support B) cohesion C) confidence D) chance Answer: C 25) In market-basket terminology, the ratio of confidence to the base probability of buying an item is called ___________. A) cohesion B) support C) confidence D) lift Answer: D 26) ___________ shows how much the base probability increases or decreases when other products are purchased. A) Lift B) Support C) Confidence D) Cohesion Answer: A 27) A market-basket analysis shows the products that customers tend to buy together. Answer: True 28) A market-basket analysis is used to explore cross-selling opportunities. Answer: True 29) The more frequently two items occur in the same transaction, the higher the probability of them being purchased together. Answer: True 30) A cross-selling opportunity is created when a consumer purchases only a single product. Answer: False 31) The ratio of confidence to the base probability of buying an item is called support. Answer: False 32) What is a market-basket analysis? Answer: A market-basket analysis is a data mining technique for determining sales patterns. A market-basket analysis shows the products that customers tend to buy together. This gives companies an opportunity to cross-sell. 33) Define the three market-basket terminologies: support, confidence, and lift. Answer: In market-basket terminology, support is the probability that two items will be purchased together. A conditional probability estimate is called the confidence. The ratio of confidence to the base probability of buying an item is called lift. Lift shows how much the base probability increases or decreases when other products are purchased. 34) Which of the following techniques uses a hierarchical arrangement of criteria to predict a classification or value? A) market-basket analysis B) RFM technique C) Cooke method D) decision tree Answer: D 35) Which of the following is the basic idea of the decision tree technique? A) to perform an RMF analysis and rank consumers according to their purchasing patterns B) to select attributes that are most useful for classifying entities on some criterion C) to produce computer programs for information systems D) to use the minimum difference among groups created by the decision tree algorithm Answer: B 36) Which of the following statements is true about decision trees? A) Few decision trees can be transformed into a set of If/Then rules. B) Decision tree analysis is a supervised data mining technique. C) The algorithms used in decision trees are similar to each other. D) Decision tree programs produce computer programs for trees set up by analysts. Answer: A 37) Decision tree analysis is a data mining technique that requires a high degree of supervision. Answer: False 38) Groups created by decision tree algorithms are as different from each other as possible. Answer: True 39) A minimum difference among groups is used as the criterion for constructing the decision tree. Answer: False 40) What are decision trees? How do they classify people into groups? Answer: A decision tree is a hierarchical arrangement of criteria that predicts a classification or value. Decision tree analysis is an unsupervised data mining technique. An analyst sets up a computer program and provides the data to analyze, and the decision tree program produces the tree. The basic idea of a decision tree is to select attributes that are most useful for classifying entities on some criterion. The user should input data about different attributes into the decision tree program. The program then analyzes all of the attributes and selects an attribute that creates the most disparate groups. The logic is that more different the groups, the better the classification will be. A decision tree program creates groups that are as pure as possible. A common business application of decision trees is to classify loans by likelihood of default. Chapter Extension 13 Reporting Systems and OLAP 1) A(n) ___________ enables people to create information by processing data from disparate data sources and delivering that information to the proper users on a timely basis. A) operating system B) reporting system C) intrusion detection system D) domain name system Answer: B 2) The sales manager of a retail store wants a list of customers who have made more than three repeat purchases from the store. Which of the following operations of a reporting system would help the sales manager obtain such a list? A) categorizing B) calculating C) grouping D) filtering Answer: D 3) Which of the following types of reports is an example of a push report? A) static report B) dynamic report C) query report D) online analytical processing (OLAP) report Answer: A 4) Reporting systems cannot generate reports that require calculations on data. Answer: False 5) What are reporting systems? What are the fundamental operations they perform? Answer: A reporting system is an information system that creates information by processing data from disparate sources and delivering that information to the proper users on a timely basis. Reporting systems manipulate data into meaningful context using four fundamental operations: (1) filtering data, (2) sorting data, (3) grouping data, and (4) making simple calculations on the data. 6) Which of the following describes the reports, users, groups, roles, events, and other entities involved in the reporting activities of a reporting system? A) network packets B) data structures C) metadata D) microdata Answer: C 7) ___________ are used by a reporting system to prepare and deliver reports to proper users on a timely basis. A) Metadata B) Microdata C) Network packets D) Data structures Answer: A 8) Reports that are not subject to change and are prepared from underlying data are referred to as ___________. A) exception reports B) static reports C) subscription reports D) dynamic reports Answer: B 9) Reports that are updated and generated by a reporting system at the time of creation are referred to as ___________. A) exception reports B) static reports C) query reports D) dynamic reports Answer: D 10) A report on the current stock prices in the market is an example of a(n) ___________. A) static report B) dynamic report C) exception report D) query report Answer: B 11) Reports that are prepared in response to data entered by users are termed ___________. A) query reports B) static reports C) dynamic reports D) online analytical processing(OLAP) reports Answer: A 12) Which of the following types of reports allows users to dynamically change the report grouping structures? A) query reports B) static reports C) dynamic reports D) online analytical processing (OLAP) reports Answer: D 13) Which of the following is an electronic report medium that can be customized for a particular user? A) Web site B) email alert C) digital dashboard D) PDF file Answer: C 14) Reports that users receive when they declare that they wish to receive notifications of events via email or on their cell phones are known as ___________. A) query reports B) subscriptions C) exception reports D) alerts Answer: D 15) Which of the following does a user receive without any activity on his or her part? A) pull report B) push report C) subscription D) alert Answer: B 16) A pull report refers to a report ___________. A) sent to users according to a preset schedule B) about the functioning of an organization's information systems C) generated by user request D) prepared by an organization from a competitor's data Answer: C 17) Which of the following report media is used for delivering a query report? A) paper and PDF file B) digital dashboard C) Web site D) alerts via email Answer: C 18) A reporting system uses metadata to prepare and deliver reports to proper users on a timely basis. Answer: True 19) Query reports allow users to dynamically change the report grouping structures. Answer: False 20) A report on the current stock prices in the market is an example of a static report. Answer: False 21) Alerts generated on the basis of user notification are not treated as reports. Answer: False 22) Push reports are generated only on receiving a user request. Answer: False 23) How does a reporting system obtain the necessary data to generate reports? Answer: Data from disparate data sources are read and combined, using filtering, sorting, grouping, and simple calculating, to produce information. Some data are generated within an organization, other data are obtained from public sources, and still other data may be purchased from data utilities. 24) Explain the different types of reports. Answer: The different types of reports are static reports, dynamic reports, query reports, and online analytical processing (OLAP) reports. Static reports are prepared once from underlying data, and they do not change. A report of past year's sales, for example, is a static report. Other reports are dynamic; at the time of creation, the reporting system reads the most current data and generates the report using that fresh data. A report on sales today and a report on current stock prices are both dynamic reports. Query reports are prepared in response to data entered by users. Online analytical processing (OLAP) is a fourth type of report. OLAP reports allow users to dynamically change report grouping structures and to sum, count, average, and perform other simple arithmetic operations on groups of data. 25) What is the difference between push and pull reports? Answer: Organizations send a push report to users according to a preset schedule. Users receive the report without any activity on their part. In contrast, users must request a pull report. To obtain a pull report, a user goes to a Web portal or digital dashboard and clicks a link or button to cause the reporting system to produce and deliver the report. 26) ___________ involves connecting to data sources, creating report structures, and formatting reports. A) Report evaluation B) Report authoring C) Report monitoring D) Report delivery Answer: B 27) The ___________ in a reporting system indicate the channel to be used for sending a report to a user and whether the report is to be pushed or pulled. A) metadata B) microdata C) network packets D) data structures Answer: A 28) The ___________ function of a reporting system pushes reports or allows them to be pulled according to report management metadata. A) report authoring B) report monitoring C) report delivery D) report evaluation Answer: C 29) For query reports, the report delivery system serves as an intermediary between a user and a report generator. Answer: True 30) Explain report authoring, management, and report delivery. Answer: Report authoring involves connecting to data sources, creating a report structure, and formatting the report. Organizations can author reports by using a developer tool like Microsoft's Visual Studio. The purpose of report management is to define who receives what reports, when, and by what means. Most report management systems allow a report administrator to define user accounts and user groups and to assign particular users to particular groups. The report delivery function of a reporting system pushes reports or allows them to be pulled according to report management metadata. Reports can be delivered via an email server, via a Web site, via SOA services, or by other program-specific means. 31) Which of the following types of reports has the ability to sum, count, average, and perform other simple arithmetic operations on groups of data? A) query reports B) static reports C) database reports D) online analytical processing (OLAP) reports Answer: D 32) In an online analytical processing (OLAP) report, a data item that is to be processed is called a ___________. A) measure B) dimension C) cube D) target Answer: A 33) Which of the following is an example of a measure in an online analytical processing (OLAP) report? A) sales region B) average cost C) customer location D) customer type Answer: B 34) In an online analytical processing (OLAP) report, the purchase date is an example of a(n) ___________. A) measure B) attribute C) dimension D) variable Answer: C 35) In the case of online analytical processing (OLAP), a presentation of a measure with associated dimensions is referred to as an ___________. A) OLAP database B) OLAP server C) OLAP service D) OLAP cube Answer: D 36) An online analytical processing (OLAP) cube can also be referred to as an ___________. A) OLAP database B) OLAP report C) OLAP service D) OLAP server Answer: B 37) Which of the following is a drawback of online analytical processing (OLAP) reports? A) They have a single or no dimension. B) Their format is static in nature. C) They require a lot of computing power. D) They can perform arithmetic operations only on single sets of data. Answer: C 38) Which of the following statements is true of dimensional databases? A) They store millions of static online analytical processing (OLAP) reports. B) They are structured to support OLAP processing. C) They specialize in sorting functions alone. D) They specialize in filtering functions alone. Answer: B 39) In online analytical processing (OLAP) reports, a dimension refers to an item that is to be processed in the report. Answer: False 40) An online analytical processing (OLAP) cube is a characteristic of a measure in an OLAP report. Answer: False 41) Users are not allowed to alter the format of online analytical processing (OLAP) reports. Answer: False 42) The process of dividing the data in online analytical processing (OLAP) reports into more details is termed drill down. Answer: True 43) An online analytical processing (OLAP) server reads data from an operational database, performs preliminary calculations, and stores the results of those calculations in an OLAP database. Answer: True 44) Describe online analytical processing (OLAP). Answer: Online analytical processing (OLAP) provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data. A remarkable characteristic of OLAP reports is that their format is dynamic. The viewer of a report can change the report's structure. An OLAP report has measures and dimensions. A measure is the data item of interest. It is the item that is to be summed or averaged or otherwise processed in the OLAP report. A dimension is a characteristic of a measure. Chapter Extension 14 Data Breaches 1) A(n) ___________ is said to happen when an unauthorized person views, alters, or steals secured data. A) data breach B) asynchronous communication C) key escrow D) sequence flow Answer: A 2) According to the reports in Ponemon's 2014 Cost of Data Breach Study, the average costs per stolen record were the highest in the ___________ industry. A) transportation B) advertising C) automobile D) healthcare Answer: D 3) Which of the following is a direct cost of handling a data breach? A) loss of reputation B) abnormal customer turnover C) legal fees and consultation D) increased customer acquisition activities Answer: C 4) Sam is a hacker who makes money by stealing and selling credit cards. He has targeted the employees of a local firm and is looking for details such as names, addresses, dates of birth, social security numbers, credit card numbers, or health records. In this case, Sam is looking for ___________. A) firewall security measures B) business continuity plans C) malware definitions D) personally identifiable information Answer: D 5) ___________ refers to the process of placing a small charge on a credit card to ensure it is working. A) Hoarding B) Carding C) Phishing D) Credit card hijacking Answer: B 6) According to the reports in Ponemon's 2014 Cost of Data Breach Study, organizations are more likely to lose larger amounts of data than smaller amounts of data. Answer: False 7) Personally identifiable information includes a person's bank account numbers, personal identification numbers, email address, and social security numbers. Answer: True 8) Stolen credit card information is validated through a process called carding. Answer: True 9) Explain how hackers use information stolen from data breaches for credit card forgery. Answer: Over 67 percent of data breaches come from hackers trying to make money. Hackers are primarily looking for personally identifiable information (PII), or data that can be used to identify a person. This includes names, addresses, dates of birth, social security numbers, credit card numbers, health records, bank account numbers, personal identification numbers, and email addresses. Stolen information is commonly used for credit card fraud. Stolen credit card information is validated through a process called carding, where a small charge is placed on the card to ensure it is working. Valid cards are then bundled and sold on the black market. The price of stolen credit cards can run from $20 to $40 per card, depending on the type of account. Stolen data is commonly used for identity theft, extortion, and industrial espionage. 10) The first step in protecting oneself from data breaches is ___________. A) securing credit and debit card details B) understanding how they happen C) learning the technologies used for these activities D) installing necessary software to protect from possible breaches Answer: B 11) ___________ refers to a software used by hackers to take advantage of a newly discovered vulnerability in a target's application or operating system. A) Exploit B) Attack vector C) Data breach D) Ward river Answer: A 12) A group of hackers use a targeted phishing attack to breach a company's firewalls and hack into its security system. Which of the following techniques have the hackers used? A) pretexting B) IP spoofing C) spear phishing D) phone phishing Answer: C 13) A group of hackers decide to steal credit card details of the users of Swift Shopping Inc., a leading e-commerce company. They infect the security system of the company's third-party vendor and gain access into its internal network. They compromise an internal Windows server of the company and use a malware to extract customer data. Which of the following is illustrated in this scenario? A) hardening B) carding C) pretexting D) data breaching Answer: D 14) Each type of data breach is different because hackers are continually developing new tools and techniques that enable them to steal more data. Answer: True 15) Attack vectors refer to the ways hackers attack a target. Answer: True 16) An exploit is a type of attack vector used by hackers. Answer: True 17) Spear phishing is used by organizations to monitor traffic passing through their internal network. Answer: False 18) Explain how data breach occurs with an example. Answer: Hackers are continually developing new tools and techniques that enable them to steal more data. They experiment with new attack vectors, or ways of attacking a target. In the data breach that occurred at Target Corporation in late 2013, attackers first purchased malware designed specifically for the attacks they planned to carry out. They then used spear phishing, or a targeted phishing attack, to infect a Target third party vendor's system and gather keystrokes, login credentials, and screenshots from the vendor's users. The attackers used this information to gain access into Target's internal network. Once inside Target's network, the attackers compromised an internal Windows file server. From this server, the attackers used malware named Trojan.POSRAM to extract customer data from point-of-sale (POS) terminals. Customer data was continuously sent from the POS terminals to an extraction server within Target's network. It was then funneled out of Target's network to drop servers in Russia, Brazil, and Miami. From there, the data was collected and sold on the black market. 19) The process of illegally transferring data out of an organization is known as ___________. A) exfiltrating B) carding C) hardening D) pretexting Answer: A 20) Which of the following is true of the measures to be taken by an organization in the event of a data breach? A) The organization must delay informing its users so that the occurrence of data breach remains private. B) The organization must not involve additional technical or law enforcement professional as it may lead to further damage to its data. C) The organization must destroy the evidence of the breach to avoid future security problems. D) The organization must respond quickly to mitigate the amount of damage hackers can do with the stolen data. Answer: D 21) Executives, managers, and all systems personnel of an organization discuss the actions to be taken by each employee in case a data breach occurs. They identify areas that would need immediate attention and assign specific responsibilities to each employee. The employees of the organization are performing a(n) ___________. A) exfiltration B) documentation C) walkthrough D) case study Answer: C 22) The purpose of a business continuity planning session in an organization is to ___________. A) discuss how to return the organization to normal operations as quickly as possible after a data breach B) build plans to increase the market presence of the organization and increase its user base C) identify new markets that will accelerate the growth of the organization D) understand the type of information stored by the organization and implement relevant security measures as required by regulatory laws Answer: A 23) Which of the following should be done by employees to protect against data breaches? A) They should develop new exploits. B) They should remove existing honeypots. C) They should design methods for data extrusion. D) They should conduct a walkthrough. Answer: D 24) Data breach notifications to users should include ___________. A) the costs incurred due to the breach B) a sincere apology and an acceptance of responsibility for the incident C) a detail on how the breach occurred and the reasons for the breach D) a report on the current security measures Answer: B 25) Data extrusion helps organizations secure their data from possible data breaches. Answer: False 26) Despite data breach, organizations should refrain from informing their users immediately as it will lead to mass user defection. Answer: False 27) Decisions on how to respond to a data breach are most effective if they are made when the breach is happening. Answer: False 28) Performing a walkthrough should be done as part of a business continuity planning session. Answer: True 29) Data breach notifications should state that the existing security policies and procedures are inadequate and that changes are being made to prevent similar breaches in the future. Answer: True 30) Why should organizations respond quickly to data breaches? Answer: Organizations need to respond to data breaches quickly for several reasons. First, by responding quickly an organization can stop hackers from doing more damage. Hackers can be prevented from accessing other internal systems, and affected systems can be patched and cleaned. Additionally, if organizations respond quickly enough, hackers may be prevented from exfiltrating, or illegally transferring, data out of the organization. Second, responding quickly may mitigate the amount of damage hackers can do with the stolen data. If the affected users are notified immediately they can change their passwords, cancel their credit cards, and possibly activate credit monitoring services. Third, the longer organizations delay in notifying users, the more upset users become. Based on past data breaches, users are reasonably forgiving of organizations that quickly notify them about what happened and what steps that are being taken to make things right. 31) What are the steps involved in an organization's plan for a data breach? Answer: Data breaches aren't guaranteed to happen, but they are likely to happen. As a result, organizations need to plan for data breaches. They need to rehearse what they will do when a breach happens. Executives, managers, and systems personnel must perform a walkthrough and discuss the specific steps each person will take after a breach occurs. This should done as part of a broader business continuity planning session that discusses how to return the organization to normal operations as quickly as possible. As part of the planning process, organizations should form a computer security incident response team (CSIRT) consisting of staff from the legal and public relations departments, as well as executives and systems administrators. Coordinated pre-planning for an incident helps organizations avoid missteps like accidentally destroying evidence and issuing poorly worded data breach notices to users. Decisions must be made before the incident, not while it's happening. Finally, as part of the planning process, organizations need to identify additional technical and law enforcement professionals that may need to be brought in to help handle the data breach. Evidence of the breach must be preserved, and the extent of the damage needs to be accurately measured. 32) The ___________ is a regulatory law that requires security precautions for government agencies. A) Federal Information Security Management Act (FISMA) B) Gramm-Leach-Bliley Act (GLBA) C) Payment Card Industry Data Security Standard (PCI DSS) D) Family Educational Rights and Privacy Act (FERPA) Answer: A 33) Which of the following regulatory laws requires data protection for financial institutions? A) the Family Educational Rights and Privacy Act (FERPA) B) the Federal Information Security Management Act (FISMA) C) the Gramm-Leach-Bliley Act (GLBA) D) the Health Information Portability and Accountability Act (HIPAA) Answer: C 34) Adam owns and manages a large insurance company. In order to protect his organization from data breach, Adam has to ensure that he has incorporated the security measures required by the ___________. A) Family Educational Rights and Privacy Act (FERPA) B) Federal Information Security Management Act (FISMA) C) Payment Card Industry Data Security Standard (PCI DSS) D) Gramm-Leach-Bliley Act (GLBA) Answer: D 35) Ven clave Hospital is a privately-owned organization that specializes in treating neurological diseases. Which of the following regulatory laws governs the data security measures to be taken by this hospital for protecting against data breach? A) the Health Maintenance Organization Act of 1973 B) the Health Information Portability and Accountability Act (HIPAA) C) the Gramm-Leach-Bliley Act (GLBA) D) the Federal Information Security Management Act (FISMA) Answer: B 36) Which of the following regulatory laws requires data protection for health care institutions? A) the Gramm-Leach-Bliley Act (GLBA) B) the Federal Information Security Management Act (FISMA) C) the Health Information Portability and Accountability Act (HIPAA) D) the Health Maintenance Organization Act of 1973 Answer: C 37) The ___________ is a regulatory law that provides protection for student education records. A) Family Educational Rights and Privacy Act (FERPA) B) Equal Educational Opportunities Act of 1974 C) Smith-Lever Act of 1914 D) Federal Information Security Management Act (FISMA) Answer: A 38) Organizations need to understand the body of regulatory law relative to the type of information they store because they will be held accountable for implementing those standards. Answer: True 39) The Federal Information Security Management Act (FISMA) details the procedures to be followed by a federal agency in case an organization fails to ensure the minimum security requirements for its data and systems. Answer: False 40) The Gramm-Leach-Bliley Act (GLBA) is a universal regulatory law that applies to all types of industries. Answer: False 41) List some of the regulatory laws that govern the secure storage of data in certain industries. Answer: Organizations need to understand the body of regulatory law relative to the type of information they store because they will be held accountable for implementing those standards. A few prominent regulatory laws that govern the secure storage of data in certain industries are listed below. 1. The Federal Information Security Management Act (FISMA) requires security precautions for government agencies. 2. The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act, requires data protection for financial institutions. 3. The Health Information Portability and Accountability Act (HIPAA) requires data protection for health care institutions. 4. The Payment Card Industry Data Security Standard (PCI DSS) governs the secure storage of cardholder data. 5. The Family Educational Rights and Privacy Act (FERPA) provides protection for student education records. 42) ___________ are software or procedures used to prevent an information security attack. A) Malware definitions B) Countermeasures C) Exploits D) Attack vectors Answer: B 43) Talgedco Inc., a software company, has taken several steps to secure its systems and data. The company has also installed a network intrusion detection system and data loss prevention system. Employees of this company have also been trained on the procedures to be followed to reduce the probability of a data breach. These steps taken by Talgedco are an example of ___________. A) attack vectors B) countermeasures C) malware D) exfiltration Answer: B 44) A(n) ___________ is used to examine traffic passing through an organization's internal network. A) honeypot B) attack vector C) security protocols open repository D) network intrusion detection system Answer: D 45) ___________ are countermeasures designed to prevent sensitive data from being released to unauthorized persons. A) Malware definitions B) Attack vectors C) Data loss prevention systems D) Data extrusion prevention systems Answer: C 46) Organizations can implement countermeasures that make data breaches impossible to occur. Answer: False 47) It is easier for organizations to prepare a list of countermeasures against many different types of attacks and take appropriate measures accordingly. Answer: False 48) An organization can easily stop a simple SQL injection attack on its online store by additional user training, stronger vendor authentication, or an internal network intrusion detection system. Answer: False 49) What are countermeasures? Why is it important for organizations to implement countermeasures? Answer: Countermeasures are software or procedures used to prevent an attack. They make data breaches improbable, or unlikely to occur. Phishing detection software, user authentication systems, network intrusion detection systems, and data loss prevention systems are examples of countermeasures that can be taken by organizations. A network intrusion detection system (NIDS) used to examine traffic passing through an organization's internal network can identify possible attacks. Finally, data loss prevention systems (DLP), which are designed to prevent sensitive data from being released to unauthorized persons, can be used to stop the data from leaving the internal network. Such countermeasures help to detect and stop hacker activity at each step of data breaching. 50) Explain the basic countermeasures to be taken by organizations to protect themselves against data breaches. Answer: There is no list of countermeasures for each type of data breach. Each attack is unique and requires its own set of countermeasures. As a starting point, however, organizations should appoint a chief information security officer (CISO) to ensure sufficient executive support and resources are given to the process of data protection. Organizations then need to implement security safeguards and appropriate data protections based on internal policies. In addition, special consideration should be given to regulatory requirements if the organization is storing certain types of sensitive data. Finally, organizations should form a computer security incidence report team, have a business continuity plan in place, and rehearse their incident response plan. Test Bank for Experiencing MIS David Kroenke, Randall Boyle 9780133939132, 9781292107707, 9780134773636, 9780136509868, 9780136078685, 9781486019281, 9780132157940
Download
Close
Close
