ACCT 4926 Assignment #1 Chapter 2
4. Disaster Recovery Plans a. The computer security weaknesses present at Hill Crest Corporation that made it possible for a disastrous data lost to occur include: * Not housing the data-processing facility in a building constructed of fire-retardant materials, and instead using one with exposed wooden beams and a wooden-shingled exterior. * The absence of a sprinkler (halon) system and a fire-suppression system under a raised floor; fire doors. * An on-line system with infrequent (weekly) tape backups. Backups, with checkpoints and restarts, should be performed at least daily. “Grandfather” and “Father” backup files should be retained at a secure off-site storage location. * Data and programs should have been kept in a library separate from the data-processing room, with the library area constructed of fire-retardant materials. * Lack of a written disaster recovery plan with arrangements in place to use an alternate off-site computer center in the event of a disaster or an extended service interruption. There was a phone list of DP personnel, but without assigned responsibilities as to actions to be taken when needed. * Lack of complete systems documentation kept outside the data-processing area.

b. The components that should have been included in the disaster recovery plan at Hill Crest Corporation to ensure computer recovery within 72 hours include the following: * A written disaster recovery plan should be developed with review and approval by senior management, data-processing management, end-user management, and internal audit. * Backup data and programs should be stored at an off-site location that will quickly accessible in the event of an emergency. * The disaster recovery team should be organized. Select the disaster recovery manager, identify the tasks, segregate into teams, develop an organizational chart for disaster procedures, match personnel to team skills and functions, and assign duties and responsibilities to each member. * The duties and responsibilities of the recovery team include: * Obtaining use of a previously arranged alternate data-processing facility; activating the backup system and network, and * Retrieving backup data files and programs, restoring programs and data, processing critical applications, and reconstructing data entered into the system subsequent to latest saved backup/ restart point.

c. Factors, other than those included in the disaster recovery plan itself, that should be considered when formulating the plan include: * Arranging business interruption insurance in addition to liability insurance. * Ensuring that all systems’ and operations’ documentation is kept up to date and is easily accessible for use in case of a disaster. * Performing a risk/ cost analysis to determine the level of expense that may be justified to obtain reasonable, as opposed to certain, assurance that recovery can be accomplished in 72 hours. Chapter 3
7. Operating System Exposures and Controls
a. A potential consequence is that hardware could be damaged if the sprinklers are not strategically placed. Data losses could be incurred as well due to damaged storage tapes. A corporate policy should be in place and strictly enforced banning food and drink from this area. In case the alarms are set off, a water sprinkler system is not appropriate due to the damage it can cause to a computer. The automatic fire extinguishing systems should dispense an appropriate type of suppressant, such as carbon dioxide. Another alternative is to have a warning sound that the automatic fire extinguishing system is going to activate in a certain amount of time (maybe 5 seconds) if an override button is not pushed. In the case of a fire, this will allow the systems personnel time to protect themselves from the suppressant, which will be sprayed.

b. The exposure in this situation is that user IDs and passwords residing in main memory will be dumped and used to gain unauthorized access to the system. One method would be to configure the operating system so that in the case of a failure, the contents of main memory is to be dumped to a disk file only. Further, a password, or maybe a combination of passwords, should be necessary to retrieve the data from the disk.

c. Employees that have been terminated should also have their passwords expired immediately. The network should require a password to log on.

d. The potential exposure is that data and/or application programs may ultimately be lost if the virus is not caught before it causes damage. Antivirus software should be placed onto the network server to prevent any files from being uploaded before they are checked for viruses. Also, an antiviral program should examine the network server to detect any viruses.

e. Upon Murray’s announcement that he is leaving, his passwords should be expired immediately. Further, since he has had access to all other users’ passwords, a message should immediately be sent to all users requiring them to change their passwords immediately or have the account expire. The account will have to be re-established with a new password if the user does not change his/her password within the time period, maybe 24 hours. During this 24-hour period, all log on attempts with old passwords should fail; the only action which should be allowed is the changing of the old passwords.

Chapter 4 5. System Configuration This configuration will entail a hybrid of centralized and decentralized processing. Because customers should be able to bank at any of the 11 branches, cash withdrawal transactions from each branch should be centrally processed and the customer databases updated. Deposits of cash and checks and payment of customers’ bills can be stored on remote computers, with the data being sent to the mainframe periodically. Banks tend to be more concerned with the promptness in recording cash withdrawals than cash receipts. Thus, the data representing the payment of customers’ bills may be sent to the mainframe computer four to six times a day for updating, while deposits of cash may be transmitted only twice a day. The payroll accounts can be stored and processed on the remote computers because these accounts do not have ATM cards. Further, the mainframe at the main office can process more efficiently if a front-end processor is used to relieve the mainframe of data communication processes. A common-carrier network is probably a good communication medium, but the data should be encrypted. The individual teller terminals should be connected to the remote main computer via dumb terminals. The tellers should not have any reason to download data regarding customer accounts.

Chapter 5 10. Database Conversion Database conversion is a critical step in the implementation phase. This is the transfer of data from its current form to the format or medium required by the new system. The degree of conversion depends on the technology leap from the old system to the new one. Some conversion activities are very labor intensive, requiring data to be entered into new databases manually. For example, the move from a manual system to a computer system will require converting files from paper to magnetic disk or tape. In other situations, companies can accomplish data transfer by writing special conversion programs. A case in point is changing the file structure of the databases from sequential direct access files. In any case, data conversion is risky and must be carefully controlled. The following precautions should be taken. a. Validation. The old database must be validated before conversion. This requires analyzing each class of data to determine whether it should be reproduced in the new database. b. Reconciliation. After the conversion action, the new database must be reconciled against the original. Sometimes this must be done manually, record by record and field by field. In many instances, this process can be automated by writing a program that will compare the two sets of data. c. Backup. Copies of the original files must be kept as backup against discrepancies in the converted data. If the current files are already in magnetic form, they can be conveniently backed up and stored. However, paper documents can create storage problems. When the user feels confident about the accuracy and completeness of the new databases, the paper documents may be destroyed. 11. System Cutover A system cutover will usually follow one of three approaches: cold turkey, phased, or parallel operation. a. Cold Turkey Cutover. Under the cold turkey cutover approach (also called the big bang approach), the firm switches to the new system and simultaneously terminates the old system. When implementing simple systems, this is often the easiest and least costly approach. With more complex systems, it is the riskiest. Cold turkey cut over is akin to skydiving without a reserve parachute. As long as the main parachute functions properly, there is no problem. But things don’t always work the way they are supposed to. System errors that were not detected during the walkthrough and testing steps may materialize unexpectedly. Without a backup system, an organization can find itself in serious trouble. b. Phased Cutover. Sometimes an entire system cannot, or need not, be cut over at once. The phased cutover begins by implementing the new system in modules. For example, one might implement the sales subsystem, followed by the inventory control subsystem, and finally the purchases subsystem. By phasing in the new system in modules, the risk of a devastating system failure is reduced. However, the phased approach can create incompatibilities between new subsystems and yet-to-be-replaced old subsystems. This problem may be alleviated by implementing special conversion systems that provide temporary interfaces during the cutover period. c. Parallel Operation Cutover. Parallel operation cutover involves running the old system and the new system simultaneously for a period of time. Running two systems in parallel essentially doubles resource consumption. During the cutover period, the two systems require twice the source documents, twice the processing time, twice the databases, and twice the output production. The advantage of parallel cutover is the reduction in risk. By running two systems, the user can reconcile outputs to identify errors and debug errors before running the new system solo. Parallel operation should usually extend for one business cycle, such as one month. This allows the user to reconcile the two outputs at the end of the cycle as a final test of the system’s functionality.