Abstract: The overall objective of this research is to improve risk management for cyber-threats among both private and public sectors through better understanding of the economic consequence of cyber-attacks and the benefits of various cyber resilience tactics in reducing these consequences. This is carried out in 3 stages: 1) estimation of direct effectiveness and costs of post-attack cyber resilience tactics; 2) adaptation of a state-of-the-art economic impact modeling approach to estimate cyber-attack consequences and resilience potential at both the microeconomic and macroeconomic levels; and 3) an empirical assessment of cyber-resilience in the U.S. Automobile Industry using the economic model to provide insights for decision makers to enhance resilience to cyber-attacks.
Authors: Adam Rose, Zhenhua Chen
Date: November 17, 2017
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Abstract: Opening offshore manufacturing plants to serve the domestic market can provide many potential benefits for firms, including lower costs and tax benefits. In such cases, firms expect their offshore plants to be lower-cost “clones” of U.S. operations. However, companies also have to consider the potential quality risks. For the study, researchers focused on U.S. pharmaceutical companies with offshore production in Puerto Rico, where 16 of the top 20 drugs in the United States were produced during their research. Findings show that higher quality risk in offshoring is not just due to the physical distance, but rather greater potential for expropriation of assets and intellectual property; political, social, and currency instability; issues related to insufficient worker experience and infrastructure; more pronounced cultural issues, language, and communication incompatibilities.
Authors: John V. Gray, Michael J. Leiblein, Aleda V. Roth
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