Min-Seok Pang, Ph.D.

As a CIO, what would you say to a member of the board of directors who is saying that he/she is so busy that he/she does not have time to hear your presentation?

As CIO, I would say to the board of directors member that the presentation I had prepared is beneficial for all aspects of the company and impacts the company’s performance and future. By not getting involved and listening to the presentation, they will not understand the current and upcoming projects that will benefit the company and this may lead to different risks for the company if the required investment for these projects is not given. Convincing them to listen to my presentation will also mean that I will have to explain how my presentation will directly benefit them individually as well.

-How to make sure that the interests of senior management are aligned with those of shareholders?
Firstly, some of shareholders don’t know how to operate a business. In addition, because of different interests, the company needs a supervisory entity for senior management. Therefore, the board of director comes out. The board of directors know how to management business. Thus, they can know when the senior management break shareholders’ interest.

-What would be a case in which a CIO does not serve the best interests of shareholders?
The CIO puts much budget on new IT system development or maintence which not generates customer benefit immediately. IT needs to maintenance to keep operate efficiency and secured. Usually, this doesn’t see any benefit to customers until some crisis happen. If the customer think their information are leaked which will influence the company’s profit. If CIO doesn’t realize the crisis and takes measurement of it, it will against shareholders’ interest like Target did.

What would be a case in which senior management does not serve the best interests of shareholders?
Even though the utmost purpose of a senior management is to serve its shareholders, there are instances when it is unable to keep up to the words. Example, if a company is not making much profits, then in such cases the management is unable to either give dividends or bonus to its shareholders. Also, when a senior management funds its profits for its regular operations, the shareholders interests towards the company are put to rest for some time.
How to make sure that the interests of senior management are aligned with those of shareholders?
To ensure that the senior management alings itself to a shareholder’s interests, it is essential to first hire the right board of directors who can understand the business and shareholders well and their expectations. Secondly, to align their interests, it is important for the company to lay down its business perspectives, operations goals, and its vision, so that the right shareholders can buy their stocks. In such cases, shareholders are award of the company and invest wisely knowing the risks and benefits.
What would be a case in which a CIO does not serve the best interests of shareholders?
A case where the CIO invests more money in the IT infrastructure building. In this case, during the initial period, it is difficult to real profits from the business and new IT operations, as it takes time. During this lean period, the shareholders interests are kept in stake, until the business starts generating profits.
What are the duties of an information systems auditor?
The Information Systems auditor must act as a guardian for all IT business operations and delivery of business to customers. He/She must make sure that the delivery of services follows as per the standards defined in the organization, make sure that there are no issues/errors while delivering services, and must safeguard the data and IT operations to the best ability.
As a CIO, what would you say to a member of the board of directors who is saying that he/she is so busy that he/she does not have time to hear your presentation?
It is important for the board of directors to take consent from the senior management, so that they can make informed decisions. If they refuse to take time for that, then the CIO should entrust upon them the benefits of IT in business operations and how it is benefiting the shareholders. Even after that, if the board is not listening, it clearly means that they are not following their duties properly and should be escalated with the right ethics in place

How to make sure that the interests of senior management are aligned with those of shareholders.
Corporate Governance requires that the Board of Director ensure that all of the Senior managements’ actions are always aligned with shareholder’s best interest
The Board of Directors supervises senior management to make sure, to enforce that shareholder’s interest are always protected . Senior Management interests are often self serving and not always on the best interest of shareholders.

What would be a case in which senior management does not serve the best interests of shareholders?
The senior management would be held accountable by his or her duties to fulfill the shareholders’ policies in the firm. If the senior management doesn’t fulfill the shareholders’ interests in the firm then the senior management will be discharged from his or her position.
How to make sure that the interests of senior management are aligned with those of shareholders?
The senior management must follow the guidelines by the shareholders of the firm in order to fulfill the senior management’s obligations into successful results.
What would be a case in which a CIO does not serve the best interests of shareholders?
The CIO would follow the similar fate as the senior management to be discharged from his or her position in any other firms. Furthermore the CIO’s duty is to serve the shareholders’ best interest of the firm.
What are the duties of an information systems auditor?
The info system auditor’s duties are to perform the IS operational analysis in the relation of specific objectives by the Internal Audit management: (1) performance assessments, (2) identify improvement options, and (3) improvement developments.
As a CIO, what would you say to a member of the board of directors who is saying that he/she is so busy that he/she does not have time to hear your presentation?
I would speak to the CEO about this matter; since, the board of directors would acknowledge & comply by the CEO’s position to suggest any important info to be presented in the firm. The board of directors, who are ones to hire & vote in a CEO into their firm to be lead & operated.

What are the duties of an information systems auditor?

The Information Systems Auditor has several duties, which include the control of applications, procedures, system security, communication control and so on. Also it is really important to verify backups and disaster recovery, and system maintenance.
They also have to Prepares and presents written and oral reports and other technical information in a pertinent, concise, and accurate manner for distribution to management.

– Any examples in Prisoner’s Dilemma in our real-life?

An example of Prisoner’s Dilemma is civilization. If everyone follows the rules and creates a stable society, we all do pretty well. If everyone else works hard and person A is barbarian and robs you, then person A gets all of your stuff without having to work for it and you are left with nothing – the best solution for person A but the worst for you. If everyone becomes a barbarian, there’s nothing to steal and we all lose out..

Any examples in Public Goods in our life?
Public goods is non- rivalrous and non-exclusive goods, service, or places can be shared with public. There are lots of public goods in our life. The Broad street road is public good which is shared with all people. In addition, Temple University TU guest wireless which can be used by people outside from schools. Furthermore, Electricity is provided by PECO, everyone can use it. Additionally, New York Central Park, everyone can wander in there.

As the CIO of IVK, how would you convince business unit heads to come up with funding for the IT security fix?

I would provide examples of other firms and how costly breeches were to them. I would also point out how much private data and information we have to express the huge liability.

Any examples in Public Goods in our life? Fresh air, water, public education, ect…

Any examples in Prisoner’s Dilemma in our real-life?
one example of a prisoner’s dilemma in real life would be countries who discuss curbing their CO2 emissions. where it would be in everyone’s best interest if all countries did this, how ever, it would immediately beenfit one country to did not change their behavior, if they expected everyone else to do so.

How would you calculate a probability and potential damages in IT security breach?

In order to calculate the probability and potential damages in a security breach I would look at recent activity in the industry relating to security breaches, see the percentage of companies being breached and the average loss in each breach, by sourcing within the industry you could see the most probable activity.

Any examples of tragedy of the commons?

Store parking lots can be an example, since no one owns a spot or pays to park in most lots, no one puts much thought into the quality of the lot, people leave carts or trash wherever they want and eventually may take up spots that others can not use.

As the CIO of IVK, how would you convince business unit heads to come up with funding for the IT security fix?
As the CIO of IVK, i would first need to showcase the potential impact of lack of IT security fix in present and its futuristic implications. I would also need to show industries in the same business and how they implemented IT security procedures and benefited from the long-term prospects.
How would you calculate a probability and potential damages in IT security breach?
The probability and potential damages in the IT security breach can be estimates based on the security breaches that have happened in the past. With a metrics showing the trend of IT security issues, it can be deciphered easily on what will be the potential damage in the future as well.
Any examples in Tragedy of Commons?
An example of Tragedy of Commons would be the earth’s atmosphere. The earth is getting polluted due to industrialization and other activities. As an example of Tragedy of Commons, many international borders and organizations understand the importance of preserving the earth and its surroundings so that people can live a healthy and sustainable life.
Any examples in Public Goods in our life?
There can be many examples of public goods in our lives. Some of them are Transportation, Health and Hospitality, Insurance, Home Accessories, Consumption goods and much more.

Any examples in Public Goods in our life?

There are many examples of Public Goods and a couple of them are: free-to-air television, air and national defense.
Information goods are also example of public goods and its included software development, authorship, and invention.

It maintenance is needed to keep the competitive edge an organizations has, Technology evolves so fast and it quickly depreciates , at least routine maintenance insures the systems stays updated and relevant.

• Why does an IT system need maintenance? It does not become rusty! Or does it?
Firstly, technology changes rapidly. Without maintaining, the company will fell behind compared with similar industry. It influences the generating of profit. Secondly, data is key factor for the company. If the company doesn’t update the date, some of them is outdated. For example, if ByRequest doesn’t maintenance member’s data for many year, members have higher probability change behaviors. In addition, IT system has capacity limitation. Without maintaining, it will reach the limitation. Finally, maintaining can make system faster.

• On IT Adventures Page 58, it reads “we’ve run closer to 5 to 6 percent of sales on IT spending. Which, by the way, Davies thought wasn’t enough to keep IT assets from degrading over time..” Why does Mr. Davies mean by degrading?
Without putting more money in IT system, it can’t generate more profit to the firm because of insufficient operating. For example, IRS employees’ email just have 50MB limitation to save to the server, others are saved to the local computer. If the computer system shut down, IRS will lose much important information.

• If it needs to spend money in maintaining IT systems, how much does a company need to spend on it? What happens with too little spending in maintenance? What happens with too much?
To spend money can run the IT system sufficient which means can generate more profit to the company compared to the last year or season.
If the company spends little in maintenance, there won’t have impact on the company instead of wasting money. Without efficient IT system support, other aspects can’t operate efficient either.
If much too much in maintenance, IT department has little money invest in other issues.

Why does an IT system need maintenance? It does not become rusty! Or does it?
Information Technology is a highly rapid and variant stream of technology. Every day technology keeps changing and each update of technology brings in new features, value-adds, business benefits and others. So to upgrade the IT systems to the latest technologies updates, maintenance is required.
On IT Adventures Page 58, it reads “we’ve run closer to 5 to 6 percent of sales on IT spending. Which, by the way, Davies thought wasn’t enough to keep IT assets from degrading over time..” Why does Mr. Davies mean by degrading?
Mr. Davies means that 5-6% of sales on the total IT spending is less. Due to this, system would degrade over the time and the company would not have enough sales to adjust for the costs in upgrading the systems to a higher level
If it needs to spend money in maintaining IT systems, how much does a company need to spend on it? What happens with too little spending in maintenance? What happens with too much?
A company needs to spend only that much amount which would satisfy their business requirements. Too little spending is however a scenario where the company may not be able to match the latest technology updates and may fall short of competitive advantages. Too much spending is however not harmful to a business progress, but would impact its finances in the present run, as the company’s finances should be rightly regulated and should not either shoot up or loose down

– Why does an IT system need maintenance? It does not become rusty! Or does it?

IT systems need ongoing and up to date maintenance to keep up with the latest technologies and system upgrades. IT systems require frequent changes to systems to fix or enhance its functionality. Maintenance on IT systems are also important because of the rapid growth of information systems and networks security is becoming a very major concern- especially in very big companies. When companies do not keep up with its IT systems, it also loses its competitive edge and becomes in fact “rusty” and outdated.

– If it needs to spend money in maintaining IT systems, how much does a company need to spend on it? What happens with too little spending in maintenance? What happens with too much?

A company needs to spend enough on IT maintenance to fulfill its daily operations and ultimate end goals. For example, an insurance company likely requires a smaller cost allocation toward IT than an online media company due to the difference in end goals and daily operations. When spending too little on IT maintenance, the company cannot keep up with the latest technologies and upgrades, losing its competitive edge over other companies in its industry . When too much money is spent, a company ends up spending a great deal on redundant or disparate technologies that overlap or don’t work very well together, which can actually risk productivity. It also loses opportunity to spend money on new infrastructure or technologies.