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Questions: i) A review of the top-down analysis that led to the focus on a particular company. A rational for considering particular economies, industries and companies from within those industries should be provided. ii) A fully explained / justified calculation of the current intrinsic value of the company - established using at least one DCF technique and one relative valuation technique (all figures employed including growth projections to be explained / justified and performance comparisons within industries and / or between countries explained. N.B. illustrative examples used in the lectures / workshops should not be used). iii) As the methods employed in ii) above are likely to result in different valuations, you are required to provide an academic justification of the valuation method(s) you will rely upon. Answers: (i). The top down approach of TMC academy has been illustrated below with the diagram as follows: Figure: Top down analysis (Source: Pheimunittrusts.com. 2016) Global factors: The first aspect of the top down analysis is to consider the global factor, which adds to the increment in the value of the shareholders. The various types of the global factors, which affect the values of TMC Education, include the admission of more number of students from different region of the globe. The company should aim at increasing the intake of the student from varied areas so that the company can look forward positively to the contribution to the global parameters. The institution should also focus on the existing political, situation in that particular region so that the institute can look forward to increase the amount of the increase in intake of the students. It also ensures that then expansion of the institute in the different location is having a stable political situation to support the operations. (Statistics ,2013) Country specific factors: The country specific objective includes the socio political situation, population statistics and the balance of payment situation in the chosen country. This helps the company to eliminate the various types of the aspects, which exists, as a result, of the defaults in the payments made by the monetary and fiscal measures by the existing Government. The company is also able. In this way, the company is able to overcome to the various types of the existing barriers arising due to the country specific factors. (IMF Survey The Global Economy 2016). Sector specific factors The sector specific factor includes the various type of the growth in the valuation and the understanding of the cycles in the relative valuations of the country. The institution should also look forward to the various aspects of the investment opportunities, which exists in counterpart of the different location of the world, which may contribute to the growth of the institute. The growth of the institute can be studied on the basis of the relative growth of the other such institutes located in the adjoining location of the Middle road Singapore region. The company will be able to see the potential growth opportunities, which exist in the growth pattern of the different institutes and the company will be able to define the various styles of the policies of the strategic management, which will contribute to the growth of the institute (Deng et al., 2014). Stock selection: The company further needs to evaluate the stock of the company by the analysis of various types of the qualitative and the quantitative analysis, which include the analysis of the qualitative education of the academy. This further show the several, aspects quality and the quantity on the basis if then number of the intake of the students of the institute of the various types of the adjoining institutes and needs to improve its quality of the education services base on then similar institutes based in Singapore (Deng et al., 2014). (ii). Intrinsic value can be defined as the actual value of a business, asset or stock, which is determined by incorporating all the factors, related to the item. It is not necessary that the intrinsic value and the market value of any item will be equal all the time. Intrinsic value of any company or stock is computed by using various methods techniques. The most common methods to calculate intrinsic value are Discounted Cash Flow Model and Relative Valuation Model (Brigham Ehrhardt, 2013). Discounted Cash Flow (DCF) Model:- Discounted Cash Flow model is the most popular and appreciated model, used for calculating intrinsic value. DCF model use to forecast the profitability of any investment opportunity by estimating the future cash flows. In this process, the projected future cash flows are discounted to estimate the net present value of the future cash flows to evaluate the potentiality of the investment (DeFusco et al., 2015). The fair value of TMC Education Corporations Ltd. shares is evaluated below by using DCF model. To forecast the future cash flows, the most important factor is growth rate. It can be measured by different techniques. One of the techniques is CAGR Model. The formula of growth rate under CAGR model is as follows: Growth Rate = (EV/BV)1/n 1 Where, EV = Ending value of Investment BV = Beginning Value of Investment n = Nos. of Period The growth rate of TMC Education is calculated in the following table: Free Cash Flows (FCFs) 2014 2013 2012 2011 2010 2009 Net Income/(Loss) Before Tax (3,901,587) (2,809,935) (2,966,943) (2,025,486) 68,437 Add Depreciation 640,375 594,730 594,236 604,082 799,586 Add Interest Expenses 34,056 89,014 18,852 138 7,037 Total EBIT (3,227,156) (2,126,191) (2,353,855) (1,421,266) 875,060 EBIT Growth Rate using CAGR -229.82% Current Assets 3,458,104 4,652,781 3,839,911 3,113,741 6,685,019 6,233,020 Add (Subtract) - Decrease(Increase) in Current Assets (given) 1,194,677 (812,870) (726,170) 3,571,278 (451,999) Current Assets' Growth Rate using CAGR -221.46% Plant, Machinery Equipment 2,057,945 2,388,217 2,195,695 6,586,103 12,792,041 13,367,663 Add (Subtract) - Decrease(Increase) in Plant, Machinery Equipment (given) 330,272 (192,522) 4,390,408 6,205,938 575,622 PPE Growth Rate using CAGR -10.52% Current Liabilities 7,991,374 7,404,077 9,198,913 6,980,002 7,542,612 8,000,115 Add (Subtract) - Increase (Decrease) in Current Liabilities (given) 587,297 (1,794,836) 2,218,911 (562,610) (457,503) Current Liabilities' Growth Rate using CAGR -205.12% The growth rate can be calculated by using AAGR method also. The formula of AAGR is derived by the following formula: Growth Rate = (AGR1 + AGR2 +AGRn) /n Where, AGR = Annual growth Rate n = Number of Periods The growth rate of TM Education, by using AAGR method, is calculated in the following table: Free Cash Flows (FCFs) 2014 2013 2012 2011 2010 2009 Net Income Before Tax (3,901,587) (2,809,935) (2,966,943) (2,025,486) 68,437 Add Depreciation 640,375 594,730 594,236 604,082 799,586 Add Interest Expenses 34,056 89,014 18,852 138 7,037 Total EBIT (3,227,156) (2,126,191) (2,353,855) (1,421,266) 875,060 y/y Growth 51.78% -9.67% 65.62% -262.42% Average Growth -38.67% Current Assets 3,458,104 4,652,781 3,839,911 3,113,741 6,685,019 6,233,020 Add (Subtract) - Decrease(Increase) in Current Assets (given) 1,194,677 (812,870) (726,170) 3,571,278 (451,999) y/y Growth -246.97% 11.94% -120.33% -890.11% Average Growth -311.37% Plant, Machinery Equipment 2,057,945 2,388,217 2,195,695 6,586,103 12,792,041 13,367,663 Add (Subtract) - Decrease(Increase) in Plant, Machinery Equipment (given) 330,272 (192,522) 4,390,408 6,205,938 575,622 y/y Growth -271.55% -104.39% -29.25% 978.13% Average Growth 143.23% Current Liabilities 7,991,374 7,404,077 9,198,913 6,980,002 7,542,612 8,000,115 Add (Subtract) - Increase (Decrease) in Current Liabilities (given) 587,297 (1,794,836) 2,218,911 (562,610) (457,503) y/y Growth -132.72% -180.89% -494.40% 22.97% Average Growth -196.26% As discussed above, the FCFs are discounted for evaluating its present value. Therefore, it is very necessary to determine WACC for discounting the FCFs, as the formula of discounted cash flow is: DCF = FCF/(1+WACC)n Where, n = number of periods The formula of WACC is given below: WACC = (E/V x ke) + [(D/V x kd) x (1-Tc)] Where, E/V = Weighted Average Equity Capital ke = Cost of Capital D/V = Weighted Average Debt Capital kd = Cost of Debt Tc = Tax Rate As per the formula, the WACC of TMC Education is calculated below: Payout ratio = Dividend Per Share / EPS (Basic) FY2014 FY2013 Dividend per share (Do) 0.0597 0.0000 EPS - Basic $ (2.31) (1.71) Payout ratio -2.58% 0.00% Return of Equity = Profit For The Year / Total Equity FY2014 FY2013 S$'000 S$'000 Profit for the year (3,901,587) (2,809,935) Total Equity 17,538,270 21,465,801 Return of Equity -22.25% -13.09% Dividend Growth Rate = Return of Equity x Retention Rate (1-Payout Ratio) FY2014 FY2013 Return of Equity -22.25% -13.09% Retention Rate (1-Payout Ratio) 102.58% 100.00% Dividend Growth Rate (g) -22.82% -13.09% Discounted Rate (ke) = Dividend Per Share (D1) / Value of Stock (P0) + Dividend Growth Rate (g) FY2014 FY2013 Share price 0.069 0.069 FX Conversion Rate into SGD 1 1 Share price - SGD 0.07 0.07 Dividend per share (D1) 0.0461 0.0000 Share price - SGD (P0) 0.0686 0.0686 Dividend Growth Rate (g) -0.2282 -0.1309 Discounted Rate (ke) 44.38% -13.09% 2.3 COST OF DEBT Total Debts FY2014 FY2013 S$'000 S$'000 Non-Current Laibilites: Notes Convertible Bonds - CL Senior note Borrowings 3,243,255 602,829 Current Lailibilies: Bank debts and current portion of long term debts 1,248,223 1,049,996 Convertible bonds - CL Senior note - CL Trade and otherpayables 6,743,151 6,354,081 Borrowings Total Debts 11,234,629 8,006,906 Cost of Debt (kd) = Finance / Total Debts FY2014 FY2013 S$'000 S$'000 Finance Costs 34,056 89,014 Total Debts 11,234,629 8,006,906 Cost of Debt (kd) 0.30% 1.11% 2.4 WEIGHTED AVERAGE COST OF CAPITAL (WACC) Capital Structure = Equity + Debts FY2014 FY2013 S$'000 S$'000 Issues Capital (E) 17,538,270 21,465,801 Total Debts (D) 11,234,629 8,006,906 V = E + D 28,772,899 29,472,707 Calculation of Weighted Average Cost of Capital (WACC) = (E/V x ke) + [(D/V x kd) x (1-Tc)] FY2014 FY2013 E/V 60.95% 72.83% ke 44.38% -13.09% D/V 39.05% 27.17% kd 0.30% 1.11% 1-Tc (1-17%) 83% 83% WACC 27.15% -9.28% (iii). From the above discussion, it is very much clear that different valuation methods use to evaluate an investment by different parameters. Hence, the outcomes of the valuation processes do not tally with each other. In the above table, both the DCF Model and Relative Valuation Method are demonstrated under two different factors. For DCF Model, the growth rates are determined under two different techniques. The relative valuation model is also demonstrated by using two ratios. Different Techniques of DCF Model:- As discussed above, the growth rate, required for calculating the DCF, is computed under two different techniques Compound Annual Growth Model (CAGR) and Average Annual Growth Rate Model (AAGR). In CAGR model, the growth rate is calculated by using the ending value and the beginning value of the investment. It can be defined as the smoothest yield rate of any return. It is easy to calculate. It is very effective for ascertaining growth rates of historical prices. It should be noted that CAGR model does not incorporate the risk factors, associated with an investment (Bierman Jr Smidt, 2012). AAGR model is another simple model, used for growth rate ascertainment. This model considers the year-to-year growth rate to derive the average growth rate for a certain period. Therefore, the growth rate under this model reflects the growth trend of the investment. However, as it is determined by considering all the annual growth rates over a period, if in any particular period, the growth rate is abnormally high or low, that creates impact on the average growth rate (Balassa, 2014). It is always better to consider the CAGR model for any long-term investment. It helps to predict the future value better than AAGR. In the above calculation, the fair value of the shares derived from CAGR is equal to the market value, whereas, as per AAGR model, the fair value is SG$0.04, which is lower than the market value. Thus, it proves that, for DCF model, growth rate under CAGR helps to provide the accurate outcomes (Dolvin et al., 2012). Different Techniques for Relative Valuation: Relative valuation can be ascertained by using two different ratios P/E Ratio and EV/EBITDA Ratio. P/E ratio is the most common metrics for investment appraisal. It provides the input to evaluate the shares by the earnings of the company. It should be noted that many companies use to manipulate the accounting returns for showing higher P/E ratio. Moreover, it only considers profits and does not incorporate cash flows (Hirshleifer et al., 2013). EV/EBITDA ratio includes cash flows and overall value of the company. Therefore, it provides more accurate overview of the financial position. It has been observed that for negative profits or net losses, this ratio does not provide proper evaluation (Pinto et al., 2015). In this scenario, most of the companies are having net losses. Therefore, the average EV/EBITDA of TMC Education is not showing proper figures. Hence, for this particular case, P/E Ratio is considered as the better alternative for relative valuation. Comparison between DCF Model Relative Valuation Model: DCF model consider the discounted future cash flows for determining the present value of shares. It incorporates the discount factor and also the time value of money. Therefore, investor, using DCF model, can forecast about the future earnings of the investments. The relative valuation model depends on the industrial benchmark or the competitors financial performance. It depicts the fair value of the share, which is more market driven (Penman, 2015). An investor always prefers such evaluation model, which can provide him the overview on future performances of the investment. Hence, from this point of view, DCF analysis is the better alternatives, as it depicts how much an investor can earn from any investment in the future (Spronk et al, 2016). It also defines the fair value of the investment, which can be paid for the future earnings. Reference List:- Amiri, A., Ravanpaknodezh, H., Jelodari, A. (2016). Comparison of stock valuation models with their intrinsic value in Tehran Stock Exchange.Marketing and Branding Research,3(1), 24 Arabsalehi, M., Mahmoodi, I. (2012). The quest for the superior financial performance measures.International Journal of Economics and Finance,4(2), 116 Awan, A. G., Siddique, K., Sarwar, G. (2014). The Effect of Economic Value-Added on Stock Return: Evidence from selected Companies of Karachi Stock Exchange.Research Journal of Finance and Accounting,5(23), 140-152 Balassa, B. (2014). Development Strategies'.International Economics and Development: Essays in Honor of Ral Prebisch, 159 Bierman Jr, H., Smidt, S. (2012).The capital budgeting decision: economic analysis of investment projects. Routledge Borde, N. A. (2013). Shareholder value creation in indian companies: an empirical study Brigham, E. F., Ehrhardt, M. C. (2013).Financial management: Theory practice. Cengage Learning Damodaran, A. (2012).Investment valuation: Tools and techniques for determining the value of any asset(Vol. 666). John Wiley Sons. DeFusco, R. A., McLeavey, D. W., Pinto, J. E., Anson, M. J., Runkle, D. E. (2015).Quantitative investment analysis. John Wiley Sons Deng, y., mcmillen, d. p., sing, t. f. (2014). matching indices for thinly-traded commercial real estate in singapore. regional science and urban economics, 47, 86-98. (ii).

Reality Vs. Idealism Essays - Fiction, Literature,

Reality Vs. Idealism In the short story, ?An Occurrence at Owl Creek Bridge?, Ambrose Bierce quickly drifted from realism in the beginning of the story to idealism throughout the rest of the selection. Immediately before Peyton experiences his first idealistic event, Bierce described a realistic thought on how Peyton closed his eyes and attempted to fix his final thoughts on his loved ones, his wife and children. Bierce described an idealistic observation by the main character, Peyton as he explained how he could see the intricate details through the vibrancy of the leaves of trees on the riverbank. As the story goes on Bierce often refers to the soldiers, the captain, the sergeant, the two privates, and his executioners as monsters. He refers to their movements as ?grotesque and horrible? and their size ?gigantic.? As Peyton tore off the noose around his neck and thrust it aside vigorously, he described how the movements of his hands resembled the movements of a water snake. As Peyton began on his final thoughts reality faded quickly to an unrealistic point of view, or state of mind. Bierce described an unrealistic, super natural sort of power that Peyton obtained as he emerged from the stream. At that moment Peyton was in full possession of his physical senses and could feel and understand things never before perceived. The first sense that he had noticed was his amplified sight and his perception living things. From the stream he noticed the distinct colors in the dewdrops upon the blades of grass. He could see from across the bank, the gray spiders connecting their webs from twig to twig. As he noticed the veining of each leaf on the trees he also observed every little insect upon them. He could see everything as if it was in slow motion and amplified to the creators' explanation of how and what steps he took to paint his master piece. Bierce described his second unrealistic encounter as his sense of hearing being amplified, as to hear every little sound, far and near. As Bierce described in his unique, highly descriptive style of writing, Peyton could hear the ?humming of the gnats that danced above the eddies of the stream.? Most human beings are incapable of hearing a gnat fly and roam about, for it's size and muted humming is no louder than a pin dropped on a rug. He could hear the flapping of the dragonflies' wings and the strokes of the water spiders as they ventured through the stream. He described all these lucid sounds as audible music. Peyton's hearing was remarkably and quixotically amplified beyond any human beings capability. The way Bierce described Peyton's super natural powers, so to say was so detailed and full of imagery. As Peyton once again emerged to the top of the stream the soldiers or in Peyton's point of view, monsters, were all aimed directly at him ready to shoot on command. As the commander ordered his men to fire Peyton dove deep into the stream and was shot between his collarbone and neck, which he so simply pulled right out with no pain or blood. Bierce describes how Peyton thought with the rapidity of lightening. These are yet more super natural, unreal descriptions of the visions and superhero like qualities. Bierce explains Peyton's adventure of escape and idealistic traits in such a believable way that if it wasn't so exaggerated it could very well be mistaken as reality. As Peyton was being hanged the idealistic events began to occur. Bierce described through the nearly the whole story how Peyton experiences super natural powers such as, amplified sight, hearing, the ability to remove a bullet with such ease that he simply snatches it right out, and highly sensitive touch. Bierce told of how he escaped through his five senses being recorded in a way that no man would ever perceive. As the story ends and Peyton is still hanging high above the river, with a noose around his neck, idealism once again fades into reality.

Information Systems Security

Introduction With increased digitization of most organizational processes, there is a growing need to protect information and prevent unauthorized access to sensitive information. Many companies have fallen prey to hackers and other people who have malicious intentions. Notably, the US government, JTX and other companies around the world have had their information stolen through security breaches (Whitman, 2010, p. 455).Advertising We will write a custom essay sample on Information Systems Security specifically for you for only $16.05 $11/page Learn More Many more companies like MasterCard are operating under endless threats on their information security systems (Whitman, 2010). There is therefore a strong need to protect sensitive information from unauthorized access and more importantly, there is a strong need to prevent unauthorized physical access to secure areas. In light of the above observations, this paper seeks to identify and analyze any potent ial vulnerabilities of an information security system for a local pharmacy. The security information system for the pharmacy requires a combination of both physical and logical access controls that are meant to protect money and goods (pharmaceutical products) from theft. Tasked with the duty of identifying inherent risks associated with this business, this paper establishes physical and logical controls that mitigate the risks identified. Potential Physical Vulnerabilities and Threats Physical vulnerabilities and threats may occur in different ways. Genser (2010) observes that many organizations often overlook physical vulnerabilities and threats as important components of security breaches. Threats caused by acts of nature are the most common forms of physical vulnerabilities and threats. Indeed, like many organizations or businesses in the town, the pharmacy is subject to extreme acts of nature which can potentially lead to the loss and damage of equipment (Deswarte, 2004). The r anges of disasters that can affect the organization include lightning, earthquakes, or even tornadoes. Often, when such disasters strike, there is a resultant significant financial loss. However, within this loss perception is the threat of losing or damaging vital information. This analogy is true because information is normally stored in physical devices such as computers, compact disks and other forms of digital storage. These devices are not immune to physical vulnerabilities and damages. The ranges of environmental conditions that may cause their malfunction vary from excessive heat, too much humidity or even damages that result from water contamination. Different acts of nature can cause many of the above environmental conditions (Deswarte, 2004). Lastly, considering the pharmacy is located in a busy shopping mall, there are several environmental threats (specific to the mall), which pose different physical vulnerabilities. Certain building malfunctions such as power outages o r poor maintenance of building infrastructure, such as, water pipes and power lines may increase the pharmacy’s vulnerability to physical threats.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More These vulnerabilities may lead to power outages or water leaking from the ceiling, thereby causing damage to equipment. Some of these vulnerabilities may also cause hardware failure (Deswarte, 2004). Logical Vulnerabilities and Threats That Require Consideration The most common logical vulnerabilities and threats that pose a danger to the pharmacy are caused by acts of man. These threats can be caused by errors of omission or commission, but they may equally be caused by third parties who may have an ulterior motive on the organization. For example, a member of staff may fail to include important information in the company records, thereby causing a malfunction in the data system. Similarly, a member of staff may key-in wrong figures in the company’s financial system, thereby misrepresenting the company’s true financial information. For the pharmacy, such vulnerabilities and threats exist. The ignorance of power-on passwords and the loss or malfunction of tracking devices to recover stolen equipments also contribute to the organization’s logical vulnerabilities (Walsh, 2012). Other vulnerabilities (associated with the threat of introducing malicious codes) are the lack of regular updates to the antivirus software and the easy access to administrator privileges, such that, users can easily access the system and turn off the antivirus software. Other logical vulnerabilities may also be caused by the failure to set up proper physical controls to prevent the entry of unauthorized personnel in secure business areas. For example, if all employees are allowed to access the company’s main system hub, users may gain entry into the company’s sys tems and create a security breach. The failure to secure highly confidential information through passwords may also exaggerate the level of threats that logical vulnerabilities may have on the organization (Walsh, 2012). Similarly, if the passwords are not highly confidential, unauthorized personnel may know such vital codes and use them to gain access into the company’s systems. From the list of possible threats and vulnerabilities identified above, we can see that people who pose a threat to the organization transcend the conventional perception of thieves and hackers. Employees and visitors (who enjoy organizational trust) can also pose a threat to the organization.Advertising We will write a custom essay sample on Information Systems Security specifically for you for only $16.05 $11/page Learn More Potential Impact of All Identified Physical Vulnerabilities The potential impact of all the identified physical vulnerabilities above is enormous. Perhaps, the most visible impact is financial losses that may accrue from damages to the organization’s equipment. These costs may be realized from replacing such equipments or investing in more stringent security measures to reinforce the premises to avoid any physical damage. Other financial costs may arise from lawsuits or even of the loss of vital information entrusted to the organization. For example, being an agent of the healthcare business, confidentiality is highly important for the pharmacy. However, because of the occurrence of physical threats, such information may be lost, damaged or leaked. Such an eventuality may prove to be disastrous for the business. Many organizations that often fall prey to severe physical threats experience significant setbacks in operations (financially). Some are even forced to close down business (Walsh, 2012). Another potential impact of the physical vulnerabilities identified above is poor organizational performance (Dorantes, 2006, p. 13). Any of the physical vulnerabilities identified above can cause this impact. For example, if the pharmacy is affected by damage to its physical structures, it cannot operate efficiently. Say, some of the equipments used to run the company’s operations were destroyed by a water leak (from the roof) and the organization lost records of the previous week’s operations, or a list of its most important contacts (such as suppliers). It would be extremely difficult for the organization to operate efficiently under such conditions. Comprehensively, the overall organizational performance would reduce (Dorantes, 2006). Potential Vulnerabilities That May Exist In the Documented Network The documented network is an important component to pharmacy’s operations. It contains different pieces of information which are important to the functions of the business. Meghanathan (2010) explains that the documented network may contain information such as the organization’ s IP address, or even its hardware configuration. The documented framework is prone to different security vulnerabilities. Worker incompetence is one such vulnerability because unqualified workers are likely to cause many errors to different processes in the documented framework. For example, the documented framework needs regular maintenance processes which need to be undertaken by qualified personnel.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Similarly, qualified personnel should be able to troubleshoot any problems associated with the network without much difficulty (Meghanathan, 2010). However, if the personnel employed do not know how to conduct or oversee such activities effectively, the reliability of the documented framework may be flawed. The failure to regularly update the documented framework is also another basis of vulnerability which needs to be regularly checked. The documented framework works through an ever-changing system which is informed by the changing activities in the operating environment. For example, the pharmacy engages in different activities (which change by the day) and therefore they need to be updated regularly to the documented network. The failure to update the changing variables in the security system poses a threat to the reliability or even the validity of information provided by the network (Meghanathan, 2010). Potential Impact of All Identified Logical Vulnerabilities to the Network a nd the Pharmacy The impact of the previously mentioned logical vulnerabilities stretches far and wide (throughout the organization’s operations). Many of the logical vulnerabilities identified in this paper center on human failures to protect the system. One possible impact of the logical vulnerabilities identified in this paper is time-wastage. An organization’s time is precious and most of it should be used to improve the operations of the business as opposed undertaking activities which do not profit the organization. The failure to prevent unauthorized access to administrator privileges or the failure to regularly update the antivirus software can lead to a lot of time wastages if an attack occurs. For example, if there is a security breach and vital information is stolen, an organization may spend a lot of time trying to recover information at the expense of improving the organization’s performance. Therefore, the activities of an organization can be interf ered in this regard and a lot of time wasted (Whitman, 2010). The failure to regularly update antivirus softwares can also severely affect the functionality of the pharmacy’s system (if it is not detected in good time). This oversight can also lead to the spread of new and dangerous elements to the organization’s systems including dangerous softwares, Trojan horses, or even viruses. These malicious codes may destroy or alter systems, including electronic protected health information (ePHI). These security threats are real and they may pose a severe danger to the functionality of the systems (Whitman, 2010). Finally, this paper identifies errors of omission and commission as possible elements contributing to logical vulnerabilities. Similarly, this paper identifies the lack of physical safeguards to prevent unauthorized personnel as another element contributing to logical vulnerabilities. These logical vulnerabilities may lead to the loss of trust in an organization (Wh itman, 2010). Many organizations operate on the basis of a shared trust with not only their customers but other stakeholders as well. For example, if a bank is prone to information security breaches, customers may lose confidence in it and decide to bank their money elsewhere (because of fear of loss). A pharmaceutical company also suffers the same risk. Any of the identified logical vulnerabilities can result in such an impact. However, the impact is more severe if information security breaches happen frequently. In addition, considering the fact that the nature of the pharmacy’s operations is sensitive (health-related), the impact of a security breach may be disastrous if not life-threatening. Indeed, a security compromise of the organizational operations may have a far-reaching impact on the activities of the organization and the health of everybody who depends on it (Tipton, 2011). Dealing with the Risks (Physical Vulnerabilities and Threats) So far, we have seen that act s of nature and environmental threats (which may be caused by the location of the pharmacy in the shopping mall) constitute the most notable physical vulnerabilities and threats to the pharmacy. To deal with the risks caused by acts of nature, secondary data storage devices need to be used to back up any data that may be lost because of the destruction of equipment. These secondary data storage devices should not be stored near the pharmacy because if an act of nature occurs, they may be destroyed alongside the store’s equipment. Preferably, it would be wise to use cloud computing services to store such data because it is safer this way. The destroyed equipment can later be replaced and the stored data reinstated back to the systems (Whitman, 2010). Dealing with environmental risks arising from the operations of the shopping mall is however a tricky affair. The pharmacy may not have direct control over maintenance services in the mall and therefore, it is highly vulnerable to different security threats such as loss of power or water leaks. To deal with the risk of power outages, it is important for the pharmacy to have a backup power system. Similarly, it is important for the pharmacy to undertake further renovation to its premises so that it can prevent the contamination of its equipment from water leaks and similar risks. Preferably, it would be better to locate its technology equipment in a tamper-proof room (Whitman, 2010). Dealing with the Risks (Logical Vulnerabilities and Threats) Different logical vulnerabilities and threats have been identified to pose a risk to the security of the pharmacy’s information systems. The threats identified are equipment theft, loss of information and the launch of malicious codes on the pharmacy’s data network. Consequently, we have also established that these risks pose different vulnerabilities. The vulnerabilities associated with theft or losses are the failure to use power-on passwords and the los s or malfunction of tracking devices to recover stolen equipments. The second groups of vulnerabilities (associated with the threat of malicious codes) are the lack of regular updates to the antivirus software and the easy access to administrator privileges so that users can easily access the system and turn off the antivirus software. These vulnerabilities can be managed differently. Dealing with such logical vulnerabilities and threats is difficult. However, insuring against such risks is a practical strategy that can be adopted by the pharmacy to deal with such risks. This measure may be unpopular among most organizations but it is informed by the fact that it is difficult to completely eliminate all logical vulnerabilities or threats. This measure also works to protect the pharmacy against all the logical risks and vulnerabilities identified (Whitman, 2010). Controls (Logical Vulnerabilities and Threats) Administrative To mitigate the probability of workers making errors, strict supervision should be given to employees who have direct access to the system. This way, workers would be more careful while using the system. In addition, to prevent the theft of equipment and the unauthorized access to the pharmacy’s equipments (data) a security guard should be placed at the entrance of the room having all the equipments. Preventive To protect the pharmacy’s vulnerability against unauthorized access to data, file encryption tools can be used (Walsh, 2012, p. 17). File encryption is an effective way of protecting stored data. This security control will also protect the organization against the threat of accessing data from stolen equipment. Detective To prevent the unauthorized access of users to the organization’s information, procedures for auditing users can be introduced to the pharmacy’s systems so that unauthorized users are easily detected. In fact, this security control should be launched alongside another security control that lock’s out a user’s account once it is detected that the user makes five (or so) unsuccessful log in attempts (Walsh, 2012, p. 17). To detect the theft of equipment, CCTV cameras should be installed in the premises and finally, to detect any human errors on the company’s systems, regular checkups should be done to verify that all the information is accurate. Corrective As a corrective measure against the theft of equipment, a tracking device can be installed in all equipments so that they are easily traceable. To correct errors of omission on the company’s financial books, a contingency fund should be established. Finally, to correct security breaches, the information stolen should be changed immediately so that it cannot be used against the organization. Controls (Physical Vulnerabilities and Threats) Administrative To control physical threats caused by acts of nature, it is important to have a risk management plan to minimize the effects of such risks o ccurring. Indeed, it is impossible to prevent acts of nature from occurring but the pharmacy should have a risk management plan stipulating what needs to be done in the event that such risks occur (Christoffersen, 2011). The risk management plan will change the entire business paradigm to make the pharmacy operate in a â€Å"risk-aware† way. As opposed to limiting the activities of the organization, the risk management plan will enable the organization to operate in an effective way while still being able to protect is infrastructure and property. This security control also protects the pharmacy against other physical vulnerabilities and threats caused by its environment. Preventive A preventive measure that can be taken to protect the pharmacy against the impending physical threats and vulnerabilities is to reinforce its structural framework so that it cannot be severely affected by acts of nature or the complementary environmental risks Detective Detecting the physical thre ats and vulnerabilities discussed in this study is difficult. However, the pharmacy can rely on scientific tools such as environmental forecasts (for acts of nature) and any breakages or cracks to the infrastructure of the building to pre-empt any disasters (or environmental threats) (Christoffersen, 2011). Corrective As a corrective measure, the pharmacy can have a standby team to repair any physical damages made to the building (to correct environmental threats). Similarly, the pharmacy can have a contingency fund to finance the replacement of its equipment if any damages are realized (Christoffersen, 2011). Conclusion Different risks and vulnerabilities surround the activities of the pharmacy. However, the key to deal with such risks and vulnerabilities is to pre-empt them. This paper provides a guideline of the risk controls and measures that may be taken to achieve this outcome. The main success factor for this entire process however lies in the proper implementation of these p lans. Through such plans, the pharmacy can operate in an optimum way but completely aware of the risks surrounding its operations. References Christoffersen, P. (2011). Elements of Financial Risk Management. London: Academic Press. Deswarte, Y. (2004). Security and Protection in Information Processing Systems: IFIP 18th World Computer Congress : TC11 19th International Information Security Conference, 22-27 August 2004, Toulouse, France. New York: Springer. Dorantes, C. (2006). The Impact of Information Security Breaches On Financial Performance of the Breached Firms: An Empirical Investigation. Journal of Information Technology Management, 17(2), 13-20. Genser, M. (2010). Trustwave Launches Physical Security Testing. Web. Meghanathan, N. (2010). Recent Trends in Network Security and Applications: Third International Conference, Cnsa 2010, Chennai, India, July 23-25, 2010 Proceedings. New York: Springer. Tipton, H. (2011). Information Security Management Handbook. London: CRC Press. Walsh, T. (2012). Security Risk Analysis and Management: An Overview (Updated). Web. Whitman, M. (2010). Management of Information Security. London: Cengage Learning. This essay on Information Systems Security was written and submitted by user Eli Reyes to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Albert Hofmann and the Invention of LSD

Albert Hofmann and the Invention of LSD LSD was first synthesized on November 16, 1938, by Swiss chemist Albert Hofmann in Sandoz Laboratories in Basle, Switzerland. However, it was a few years before Albert Hofmann realized what he had invented. LSD, known as LSD-25 or Lysergic Acid Diethylamide, is a psychoactive hallucinogenic drug. LSD-25 LSD-25 was the twenty-fifth compound developed during Albert Hofmanns study of amides of Lysergic acid, hence the name. LSD is considered a semi-synthetic chemical. The natural component of LSD-25 is lysergic acid, a type of ergot alkaloid that is naturally made by the ergot fungus, though a synthesizing process is necessary to create the drug. LSD was being developed by Sandoz Laboratories as a possible circulatory and respiratory stimulant. Other ergot alkaloids had been studied for medicinal purposes. For example, one ergot was used to induce childbirth. Discovery as a Hallucinogen It was not until 1943 that Albert Hofmann discovered the hallucinogenic properties of LSD. LSD has a chemical structure that is very similar to the neurotransmitter called serotonin. However, it is still not clear what produces all the effects of LSD. According to a Road Junky writer, Albert Hoffman deliberately dosed himself [after a milder accidental dose] with just 25 mg, an amount he didnt imagine would produce any effect. Hoffman got on his bicycle and rode home [from the Lab] and arrived in a state of panic. He felt he was losing his grip on sanity and could only think to ask for milk from the neighbors to counter the poisoning. Albert Hoffman's Trip Albert Hoffman wrote this about his LSD experience, Everything in the room spun around, and the familiar objects and pieces of furniture assumed grotesque, threatening forms. The lady next door, whom I scarcely recognized, brought me milk†¦ She was no longer Mrs. R., but rather a malevolent, insidious witch with a colored mask.† Sandoz Laboratories, the only company to manufacture and sell LSD, first marketed the drug in 1947 under the trade name Delysid. Legal Status It is legal to buy Lysergic acid in the U.S. However, it is illegal to process Lysergic acid into lysergic acid diethylamide, the psychoactive drug LSD.

Carther in the rye Essay Example | Topics and Well Written Essays - 750 words

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President Obama's Health care reform Research Paper

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Vision Research Paper Example | Topics and Well Written Essays - 2500 words

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