Goshawk Investments discovers that their company software was hacked and that their clients' sensitive financial information may have been compromised. Jason, the head programmer, was able to quickly detect and shut down the malware that had infected their computer network. The media has already reported the story. However, Fawzia, the CEO, decides to delay making a public statement until the company has had a chance to run diagnostic tests and conduct interviews with senior IT staff about their security protocols. Several other members of the executive management team disagree with this decision. What is wrong with Fawzia's decision, as it relates to the crisis management process?

A. A public response should be immediate to reassure clients and avoid greater damage to the company's reputation.
B. Meeting with the IT staff at this point in time could send a negative message, undermining staff cooperation.
C. The executive management should focus on intra-office communication, while Jason and the senior IT staff handle the interviews.
D. Strategic actions, such as planning the most effective response, should take precedence over evaluation and diagnostic actions.
E. Fawzia should make a statement to shareholders before issuing a public statement to the media.


Answer: A

Business

You might also like to view...

A convertible bond is one where

a. the issuer can convert from a fixed interest rate to a floating one. b. the issuer can convert it from long-term to short-term. c. the issuer can retire the bond before its specified due date. d. the holder can convert the bond into common stock at a future time.

Business

Entities such as manufacturers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as

A. brokers. B. intermediate buyers. C. manufacturing agents. D. selling agents. E. organizational buyers.

Business

Which of the following did the statistician Tukey coin as errors solving the wrong problem?

A) Type I errors B) Type II errors C) Type III errors D) Problematic errors E) Inconsistent errors

Business

Which of the following statements is true when we consider operations as a transformation system?

a. Raw materials and finished goods are considered part of the transportation process. b. Labor, capital, and energy are considered as inputs into the system. c. Finished products and services are in the middle stage of the transformation process. d. The communication from inputs to outputs is considered a feedback loop.

Business