3 Business Lessons from the HBO Hack

Updated:
July 12, 2018

HBO, an American premium cable and satellite television network, was recently the victim of a data breach. On July 31, 2017, HBO revealed that a group of hackers had stolen 1.5 terabytes of data from the network. Following the breach, the cyber criminals were systematically leaking spoilers and unaired episodes of “Game of Thrones,” one of HBO’s flagship shows.

This hack demonstrates that intellectual property can be just as valuable to cyber criminals as personal identifiable information. To avoid falling victim to a similar cyber attack, organizations should keep in mind the following business lessons learned from the HBO hack.

1. Having a communications plan in place is critical.

Following the breach, HBO was quick to ease the concerns of stakeholders, assuring the public that no internal emails had been stolen. However, this turned out not to be the case, and HBO publicized misinformation. This can be damaging to a brand, as balancing transparency and authenticity following a cyber event is crucial. Having a formal communications strategy can help organizations map out what information is shared to the public and at what time.

2. Cyber attacks can be damaging to an organization’s reputation.

Even if the financial impact of the HBO breach ends up being minimal, the reputational damage has been done. The breach jeopardizes HBO’s image and undermines customer loyalty and trust that took years to build up.

3. To protect your business from a cyber attack, you need to understand your vulnerabilities.

It’s been reported that the HBO hackers used multiple points of entry to get into the company’s system and steal data. Organizations should understand their vulnerabilities to protect against attacks. Entry points can differ depending on the business, but often include employees connecting to networks, online printers and employees using a virtual private network while working remotely.

While you can never predict when a data breach will occur, keeping in mind the lessons above will ensure that your organization is adequately prepared.

 

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

  1. Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
  2. Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
  3. Provide investment advice and portfolio management services.
  4. Offer guidance on retirement planning, estate planning, tax planning, and insurance.
  5. Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
  6. Educate clients on financial matters and empower them to make informed decisions.
What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
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It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.