Technology investments are no different. They, too, have always been a

Question

Technology investments are no different. They, too, have always been a trade-off between risk and return. However, for enterprise technology, increased global connectivity is raising the stakes on both sides of the equation. The commercial rewards from tapping into this connectivity are enormous, but the more tightly we are connected, the more vulnerabilities exist that attackers can exploit and the more damage they can do once inside. Therefore, when a manufacturer invests in a new product life-cycle management system, it is making a bet that the system will not enable the theft of valuable intellectual property. When a retailer invests in mobile commerce, it is betting that cyber-fraud won’t critically damage profitability. When a bank invests in customer analytics, it is betting that the sensitive data it analyses won’t be stolen by cyber-criminals. The odds on all those bets appear to be shifting away from the institutions and toward cyber-attackers. They could swing decisively their way in the near future given most companies’ siloed and reactive approach to cybersecurity.

Our interviews with business leaders, chief information officers (CIOs), chief technology officers (CTOs), and chief information security officers (CISOs) indicate that concerns about cyber-attacks are already affecting large institutions’ interest in and ability to create value from technology investment and innovation. Potential losses, both direct and indirect, reduce the expected economic benefits of technology investments, as do the high cost and lengthy time frame required to build the defense mechanisms that can protect the organisation against a growing range of attackers. In short, the models companies use to protect themselves from cyber-attack are limiting their ability to extract additional value from technology.

Concern about cyber-attacks is already having a noticeable impact on business along three dimensions: lower frontline productivity, fewer resources for information technology (IT) initiatives that create value, and — critically — the slower implementation of technological innovations.
    1 
 1. The primary purpose of this passage is to

(A) identify gaps in the business world that lead to cybersecurity breaches
(B) refute the notion that companies are failing to thwart hackers
(C) discuss how the modern business marketplace is all about risk and reward
(D) explain how attention to cybersecurity impacts companies’ technological innovation
(E) demonstrate how today’s hackers are winning the fight against big corporations

2 
 2. According to the passage, all of the following decrease the economic benefits of technological investment EXCEPT:

(A) experiencing stolen intellectual property
(B) realising indirect losses
(C) weighing business outcomes and risks
(D) investing in cybersecurity protection technology
(E) reacting to cyber-threats only when necessary

3 
 3. When the authors assert that companies take a “siloed and reactive” approach to cybersecurity, they are implying that companies

(A) perform thorough research before implementing programs meant to improve cybersecurity
(B) combat problems after they have occurred
(C) have made strides against hackers in the ultimate battle of cybersecurity
(D) invest too much in cybersecurity
(E) take unnecessarily large investment risks and disregard the importance of cybersecurity

4 
 4. Which of the following is most likely an example of intellectual property as mentioned in the second paragraph?

(A) works of art posted to social media
(B) personal information, such as Social Security numbers or banking information
(C) computers and related technological devices
(D) customer and client lists and related con-tact information
(E) an outline of a streamlined manufacturing process

guddo · Answer

The passage discusses how increased global connectivity amplifies both the rewards and risks of enterprise technology investments. It argues that concerns about cyber-attacks are reducing the expected economic benefits of these investments by causing direct and indirect losses, incurring high defense costs, and slowing the implementation of technological innovations.

1. The primary purpose of this passage is to

(A) identify gaps in the business world that lead to cybersecurity breaches 
(B) refute the notion that companies are failing to thwart hackers 
(C) discuss how the modern business marketplace is all about risk and reward 
(D) explain how attention to cybersecurity impacts companies’ technological innovation 
(E) demonstrate how today’s hackers are winning the fight against big corporations

The passage centers on how cybersecurity concerns are affecting the value derived from technology investments, specifically by lowering productivity, diverting resources, and slowing innovation.

Answer: (D)

2. According to the passage, all of the following decrease the economic benefits of technological investment EXCEPT:

(A) experiencing stolen intellectual property 
(B) realising indirect losses 
(C) weighing business outcomes and risks 
(D) investing in cybersecurity protection technology 
(E) reacting to cyber-threats only when necessary

The passage lists direct/indirect losses and the high cost/time of building defenses as factors that reduce benefits. "Weighing business outcomes and risks" is a general business practice, not cited in the passage as something that decreases economic benefits.

Answer: (C)

3. When the authors assert that companies take a “siloed and reactive” approach to cybersecurity, they are implying that companies

(A) perform thorough research before implementing programs meant to improve cybersecurity 
(B) combat problems after they have occurred 
(C) have made strides against hackers in the ultimate battle of cybersecurity 
(D) invest too much in cybersecurity 
(E) take unnecessarily large investment risks and disregard the importance of cybersecurity

A "reactive" approach means addressing issues after they happen, rather than proactively preventing them.

Answer: (B)

4. Which of the following is most likely an example of intellectual property as mentioned in the second paragraph?

(A) works of art posted to social media 
(B) personal information, such as Social Security numbers or banking information 
(C) computers and related technological devices 
(D) customer and client lists and related contact information 
(E) an outline of a streamlined manufacturing process

The passage refers to intellectual property in the context of a manufacturer's product life-cycle management system. A proprietary manufacturing process is a classic example of business intellectual property.

Answer: (E)

Technology investments are no different. They, too, have always been a

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Technology investments are no different. They, too, have always been a

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