HLSS603 American Public University Homeland Security Discussion Response Responses should be a minimum of 250 words and include direct questions. You may c

HLSS603 American Public University Homeland Security Discussion Response Responses should be a minimum of 250 words and include direct questions. You may challenge, support or supplement another student’s answer using the terms, concepts and theories from the required readings. Also, do not be afraid to respectfully disagree where you feel appropriate; as this should be part of your analysis process at this academic level.

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The United States has long been considered a leader in world trade, for both the importation and exportation of goods. The average consumer fails to really consider where the products on which they have become dependent for the function of their everyday lives originates, or how it arrives at their door. A 2013 article titled Ten Legitimately Fascinating Facts About the Shipping Industry explains that at that time, around 90 percent of all goods purchased in the United States arrived by ship (Levinson, para 1). It obviously requires road, rail, and air service to move products once they reach U.S. shores, but the goods must first reach those shores, and then pass through the Customs and TSA requirements before completing their trek.

The maritime transportation industry has several vulnerabilities. As odd as it may sound in modern times, one of those vulnerabilities is piracy. Since two-thirds of the earth’s surface is water, and the majority of that water falls outside any nation-state’s responsibility or ability to effectively control, piracy is also difficult to control (UN News, 2019, para 1-2). Areas such as the Malacca Straights, the South China Sea, the Gulf of Aden, the Gulf of Guinea, and Benin are typically the top five areas affected by acts of high seas piracy (Marine Insight, 2016, para 6-8). Mitigating the possibility of piracy causes shipping companies and freight captains to sail well outside of these areas when possible, increasing shipping time, employee time at sea (requiring more pay), increased fuel expenditures, higher underwriting and insurance premiums, all of which will eventually be passed on to the end consumer in the form of higher product pricing. Complicating the issue of piracy is the fact that most maritime shipping companies are denied the ability to protect themselves with firearms stored and maintained onboard due to weapons laws at the ports which the ships are required to periodically dock, or because of the underwriter’s fear of those weapons falling into the wrong hands. A few small companies have developed a workaround in the form of “floating armories” which stay in international waters and place guards and weapons on paying ships while those ships traverse dangerous waters (Kent and Werber, 2015). These armories also increase the cost of shipping when they are utilized.

Even more pressing than the issue of high-seas piracy is the problem of searching containers at ports before they are transported by rail or truck to their final destination. Approximately 11 million containers arrive at U.S. seaports annually (U.S. Customs and Border Protection, 2018, para 1). Customs inspectors have an insurmountable (and impossible) task of searching all of those containers, of which they are only successful of searching about 3.7 percent (Kulisch, E. 2016, para 13). Henry (2018) further states that failure to physically inspect all cargo arriving in the U.S. could potentially cripple the world economy if a “dirty bomb” managed to slip through the cracks and enter the country while damaging a major port such as the Port of Los Angeles.

Henry also explains that the SAFE Ports Act of 2006 was designed to correct this, but implementation of the Act has been slow and continues to get pushed to the right. The Container Security Initiative (CSI) is also supposed to help by inspecting containers before they ever reach U.S. Ports through the use of technology, but the CSI is not available at every port of embarkation to U.S. ports; only those few deemed most at-risk (U.S. Customs and Border Protection, 2019).

The constant supply of goods arriving and departing the U.S. is critical to society, and the security and maintenance of the ships and ports for those goods is equally critical. Companies and industries trade on a global scale, and failure to observe resilience ideology on that same global scale could surely cripple the nation with far-reaching global effects.

References

Henry, Y. (2018). It Only Takes One: How a Single Shipping Container Could Cripple the World’s Economy. Global Resilience Institute at Northern University. Retrieved from https://globalresilience.northeastern.edu/2018/07/it-only-takes-one-how-a-single-shipping-container-could-cripple-the-worlds-economy/.

Kent, S. & Werber, C. (2015). How Floating Armories Help Guard Cargo Ships From Pirates on High Seas. February 3, 2015. Retrieved from https://www.wsj.com/articles/how-floating-armories-help-guard-cargo-ships-from-pirates-on-high-seas-1422934573.

Kulisch, E. (2016). U.S. Lawmakers Say with New Technology, it’s Time to Inspect all Inbound Containers. American Shipper. August 18, 2016. Retrieved from http://www.westarusa.com/u-s-lawmakers-say-new-technology-time-inspect-inbound-containers/.

Levinson, E. (2013). Ten Legitimately Fascinating Facts about the Shipping Industry. The Atlantic. Aug 12, 2013. Retrieved from https://www.theatlantic.com/international/archive/2013/08/shipping-industry-bigger-you-can-imagine/312253/.

Marine Insight (2016). 10 Maritime Piracy Affected Areas around the World. MI News Network. July 21, 2016. Retrieved from https://www.marineinsight.com/marine-piracy-marine…

UN News (2019). Piracy and High Seas Crime Growing, Becoming More Sophisticated, UN Security Council Told. The United Nations. Retrieved from https://news.un.org/en/story/2019/02/1032011.

U.S. Customs and Border Protection (2018). Cargo Security and Examinations. Department of Homeland Security. Retrieved from https://www.cbp.gov/border-security/ports-entry/cargo-security.

U.S. Customs and Border Protection. (2019). CSI: Container Security Initiative. Department of Homeland Security. Retrieved from https://www.cbp.gov/border-security/ports-entry/cargo-security/csi/csi-brief. Building a Resilient Supply Chain
by Paul Michelman
AUGUST 14, 2007
by Yossi Sheffi
This article originally appeared in the October 2005 issue of Supply Chain Strategy.
Threats to your supply chain, and therefore to your company, abound—natural disasters, accidents,
and intentional disruptions—their likelihood and consequences heightened by long, global supply
chains, ever-shrinking product lifecycles, and volatile and unpredictable markets.
No sure way exists for overcoming all such risks, especially high-impact/low-probability events such
as an outbreak of SARS or foot-and-mouth disease, or a major terrorist attack, because the absence
of historical data excludes the use of predictive statistical tools to help ensure containment of those
risks.
But some organizations cope far better than others with both the prospect and the manifestation of
unquantifiable risk. They don’t have in common a secret formula or even many of the same
processes for dealing with risk, but they share a critical trait: resilience.
The notion of organizational resilience is not new: the ability of an organization to successfully
confront the unforeseen has always been a core element of success. But because the numbers and
types of threats that can undermine a supply chain are now greater than ever, resilience has taken
on even more significance in supply chain management. As a result, leaders in the discipline have
worked to better understand what makes a particular enterprise resilient, and thus there is a
burgeoning body of knowledge from which other companies stand to benefit.
Supply chain resilience no longer implies merely the ability to manage risk. It now assumes that the
ability to manage risk means being better positioned than competitors to deal with—and even gain
advantage from—disruptions.
My three-year research project at MIT into organizational resilience, which included interviews with
dozens of companies and analysis of hundreds of disruptions, uncovered key themes in how
organizations can and should build resilience—an overview of how this can be done follows. My
book The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage covers these
topics in depth.
ACHIEVING RESILIENCE
In materials sciences, resilience represents the ability of a material to recover its original shape
following a deformation. In the corporate world, resilience refers to the ability of a company to
bounce back from a large disruption—this includes, for instance, the speed with which it returns to
normal performance levels (production, services, fill rate, etc.).
Companies can develop resilience in three main ways: increasing redundancy, building flexibility,
and changing the corporate culture. The first has limited utility; the others are essential.
Redundancy.
Theoretically, a resilient enterprise can be built by creating redundancies throughout the supply
chain. The organization could hold extra inventory, maintain low capacity utilization, have many
suppliers, etc. Yet although redundancy can provide some breathing room to continue operating
after a disruption, typically it is a temporary—and very expensive—measure.
A company must pay for the redundant stock, capacity, and workers; moreover, such excesses are
likely to lead to sloppy operations, reduced quality, and significant cost increases.
Admired and emulated supply chain strategies such as the Toyota Production System, lean
production processes, and Six Sigma practices aim to create hyperefficient enterprises—those that
operate with little inventory to deliver high-quality products in a timely fashion. A focus on
redundancy actually inhibits an organization’s ability to achieve such efficiency.
Flexibility.
In contrast, when a company increases supply chain flexibility, it can both withstand significant
disruptions and better respond to demand fluctuations.
To achieve built-in flexibility, a company should take the following actions:
• Adopt standardized processes. Master the ability to move production among plants by using
interchangeable and generic parts in many products, relying on similar and even identical plant
designs and processes across the company, and cross-training employees. Interchangeable parts,
production facilities, and people allow a company to respond quickly to a disruption by reallocating
resources where the need is greatest. Intel, for example, builds semiconductor fabrication factories
with identical layouts for machinery and production processes. Because of its standard fabrication
design, Intel can switch production among facilities if the need arises.
• Use concurrent instead of sequential processes. Employing simultaneous rather than sequential
processes in such key areas as product development and production/distribution speeds up the
recovery phase after a disruption and provides collateral benefits in improved market responses.
Lucent Technologies achieves concurrency through a centralized supply chain organization that
spans various company functions, including engineering and sales. By aligning these activities with
the supply chain, the company can view each operational area simultaneously—and quickly assess
the status of the activity in each if an emergency arises.
• Plan to postpone. Design products and processes for maximum postponement of as many
operations and decisions as possible in the supply chain. Keeping products in semifinished form
affords flexibility to move products from surplus to deficit areas. It also increases fill rates and
improves customer service without increasing inventory carrying costs, because the products can be
completed when more accurate information about what the customer wants becomes available.
Italian clothing manufacturer and retailer Benetton redesigned its manufacturing processes so that
select products—particularly those subject to extreme demand variability—are made as generic,
undyed items to be finished later, when the company obtains more accurate demand information.
• Align procurement strategy with supplier relationships. If a company relies on a small group of key
suppliers, it must maintain a deep relationship with each. Such suppliers are so vital to an enterprise
that the failure of any among them can have a catastrophic effect on that enterprise. By knowing
each trading partner intimately, a company can better monitor the group to detect potential
problems—and rely on them for help to deal in unforeseen circumstances.
On the other hand, if a company is not closely allied with a small group of suppliers, its supplier
network had better be extensive if it is to be resilient and responsive to the market. A company with
shallow relationships is less knowledgeable about its trading partners and therefore less likely to be
forewarned about supply problems. Therefore, maintaining a large network of arm’s-length
suppliers would distribute the risk should a failure occur. Neither strategy is necessarily correct; the
issue is to choose the approach that aligns a company’s supplier relationships with its procurement
strategy.
Inadequate monitoring of its supplier base almost cost Land Rover its business when UPFThompson, its sole supplier of chassis frames for the Discovery models, unexpectedly went
bankrupt in December 2001. Land Rover was totally unprepared and eventually had to pay off some
of UPF’s debt to ensure the resumption of chassis supplies. A deeper relationship with UPF would
likely have alerted Land Rover before the crisis.
Cultural change.
After a disruption, the factor that clearly distinguishes those companies that recover quickly, and
even profitably, from those that falter is corporate culture. On the surface, Nokia, Toyota, UPS, Dell,
Southwest Airlines, and the U.S. Navy may not seem to have much in common, but these resilient
organizations share several cultural traits:
• Continuous communication among informed employees. They keep all personnel aware of the
strategic goals, tactical factors, and day-by-day and even minute-by-minute pulse of the business.
Dell employees have continuous access to product manufacturing and shipment data and a wide
variety of other information. Thus, when a disruption takes place, employees know the company’s
status: what is selling, where the raw materials are, what it is they were trying to do before the
disruption hit, and so on. They can use that knowledge to make better decisions in the face of the
unforeseen.
• Distributed power, so that teams and individuals are empowered to take necessary actions. Toyota
assembly-line workers can halt production by pushing a special alarm button, and the members of
U.S. Navy aircraft carrier crews can stop flight operations if they detect an emergency. Before a
potential disruption is even visible to managers, those that are thus empowered and are “close to the
action” can take necessary measures; moreover, they can respond quickly, significantly enhancing
the chances of containing a disruption early on.
• Passion for work. Successful companies engender a sense of the greater good in their employees.
Southwest Airlines CEO Herb Kelleher recounts the words of one of his managers: “The important
thing is to take the bricklayer and make him understand that he’s building a home, not just laying
bricks.”
• Conditioning for disruptions. Resilient and flexible organizations are apparently conditioned, as a
result of frequent and continuous “small” operational interruptions, to become innovative and
flexible in the face of HILP disruptions. Albert Wright, speaking of working conditions at UPS, has
said that “disruptions are really normal.” Since its operations are subject to adverse weather, traffic
congestion, road closures, and many other problems that cause delay, the company’s recovery
processes are tested daily.
RESILIENCE ENHANCES COMPETITIVENESS
The rewards for building a resilient organization are substantial. The “hardened” enterprise will be
able to not only withstand all manner of disruption but also increase its competitiveness.
Unforeseen disruptions can create shortages that are not dissimilar to the demand spikes caused by
supply/demand imbalances; resilient enterprises can thus react to changing market demand ahead
of their competitors.
Yossi Sheffi is a professor of Engineering Systems at MIT, where he heads the MIT Center for
Transportation and Logistics.
HARVARD BUSINESS ONLINE RECOMMENDS:
Supply Chain Resilience Collection: Ways to Overcome Vulnerability for Competitive Advantage
(Collection)
The Next Killer App? It’s Your Supply Chain (Supply Chain Strategy Article)
Building the Resilient Enterprise (CD-ROM)
Paul Michelman is Harvard Business Review’s director of new editorial products. He’s on Twitter at pmichelman
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Harvard Business Publishing.
Technology Innovation Management Review
April 2015
Cybersecurity and Cyber-Resilient Supply Chains
Hugh Boyes
technological powers increase, but the side effects ”
“ Our
and potential hazards also escalate.
Alvin Toffler
Writer and futurist
in Future Shock
There has been a rapid growth in the use of communications and information technology,
whether embedded in products, used to deliver services, or employed to enable integration
and automation of increasingly global supply chains. Increased use of information technology introduces a number of cybersecurity risks affecting cyber-resilience of the supply
chain, both in terms of the product or service delivered to a customer and supply chain operation. The situation is complicated by factors such as the global sourcing of technology components or software, ownership of the systems in a supply chain, different legal jurisdictions
involved, and the extensive use of third parties to deliver critical functionality. This article examines the cyber-resilience issues related to the supply of products, services, and the supply
chain infrastructure considering the nature of threats and vulnerabilities and the attributes
of cybersecurity. In doing so, it applies a model for cybersecurity that is adapted from the
Parkerian hexad to explore the security and trustworthiness facets of supply chain operations that may impact cyber-resilience.
Introduction
Over forty years ago in his book Future Shock, Alvin
Toffler (1971) recognized that our rapid technological
advances were accompanied by side effects and hazards. This is certainly true of supply chains in the 21st
century, where information technology is often an integral part of both the supplied product or service, and
the supply chain infrastructure.
To stay competitive in a global economy, deliver
timely responses to changing customer demands, and
meet increasing service expectations, organizations
have adapted their supply chains by incorporating
computer-based management systems (Christopher &
Towill, 2002), automating many processes using cyberphysical systems, and reducing stocks through the deployment of just-in-time manufacturing and production-to-order systems. This widespread use of
information technology and advances in connectivity
have transformed many businesses and transferred
supply chain information flows from paper or the telephone to digital transactions and databases (WEF,
2013). The improved communications flow has also
delivered significant advances in the service offered by
www.timreview.ca
supply chains to their customers, enabling the tracking
of goods through the logistics chain.
These innovations place significant demands on supply chains, with the role of information technology
now critical to the delivery of responsive, cost-effective
manufacturing and supply (Christopher & Peck, 2004;
Khan & Stolte, 2014).
This article discusses how, in many information technology systems, insufficient attention has been paid to
overall system resilience and security issues, creating
significant cybersecurity and cyber-resilience vulnerabilities. It examines what is meant by cyber-resilience
and cybersecurity, and outlines the attributes that affect the cyber-resilience of a system or system-of-systems. Although the underpinning work originates in
the construction and built-environment sectors, this
article demonstrates that it can be applied more widely.
What Do We Mean by Cyber-Resilience and
Cybersecurity?
The World Economic Forum (WEF, 2012) defined
cyber-resilience as “the ability of systems and organiza-
28
Technology Innovation Management Review
April 2015
Cybersecurity and Cyber-Resilient Supply Chains
Hugh Boyes
tions to withstand cyber events, measured by the combination of mean time to failure and mean time to recovery”. The use of the term “cyber” is intended to
encompass the “interdependent network of information technology infrastructures, and includes technology “tools” such as the Internet, telecommunications
networks, computer systems, and embedded processors and controllers in critical industries”. Although
not defined by the WEF, it is assumed that a cyberevent is therefore any disturbance to this interdependent network that leads to loss of functionality, connectivity, performance, or capacity (i.e., a breach of the
network’s cybersecurity). Such events are all too common, with frequent publicity about yet another serious
security breach on an IT system. Notable recent examples include the cyber-attacks on Sony and Target.
The latter incident is of particular significance given
that the attack originates in the company’s supply
chain, with the initial compromise of an HVAC supplier’s systems (Krebs, 2014).
There is a common misconception, reinforced by media coverage of incidents, that cybersecurity is solely
about technology. This is not the case: good cybersecurity is based on a holistic approach that encompasses
people, process, physical, and technological aspects
(Boyes, 2014a). A weakness in the treatment or implementation of one or more of these aspects will undermine the overall cybersecurity of a system or business
process. For example, if an individual does not practice
good cyber-hygiene or fails to follow established security processes – such as failing to protect sensitive physical storage media from theft or loss – then there is an
increased risk of compromise.
The lack of attention to system security and resilience,
referred to in the introduction, is illustrated by the
Apple ”goto fail” bug and the ”Heartbleed” vulnerability (Boyes et al., 2014). In the case of the former, a
simple coding error exposed all iOS users to a serious
vulnerability in the Transport Layer Security (TLS) protocol, which is used by applications to secure Internet
communications. In the latter, poorly written code,
which had not been subject to adequate inspection or
test, exposed users of OpenSSL to a serious vulnerability. The affected OpenSSL software had been deployed
by many of the major industrial control systems (ICS)
suppliers. In both cases, the cause of the security
breach is poor software engineering and a failure to detect coding errors during integration and testing.
www.timreview.ca
Figure 1 illustrates the categories of risk that need to be
considered when assessing the cyber-resilience of a supply chain. The presence of nature may seem at odds in a
discussion of cyber-resilience, however, it is important
to recognize that natural events can have significant impact on communications and IT infrastructure. For example,
solar
storms
can
disrupt
wireless
communications, both on a global scale for satellite
communications and on a local scale for mobile communications (3G and 4G). Natural causes, such as earthquakes, floods, and damage by animals may also
damage or disrupt cable connections carrying telephony and Internet traffic, thus interfering with a supply chain.
To improve the cyber-resilience of a supply chain, it is
essential to understand the various aspects that should
be addressed in designing for cybersecurity. Much of
the good practice currently available is based on the information assurance community’s use of the “CIA triad”: confidentiality, integrity, and availability. However,
this approach does not adequately address the cyber-security of complex global information technology systems or the cyber-physical systems used in our supply
chains. An alternative approach, which is better suited
to these complex systems, is to start by considering the
Parkerian hexad (Parker, 2002), which comprises confid-
Figure 1. Threats and vulnerabilities that affect cyberresilience
29
Technology Innovation Management Review
April 2015
Cybersecurity and Cyber-Resilient Supply Chains
Hugh Boyes
entiality, integrity, and availability, plus utility, authenticity, and possession. The rationale for this approach is
that the hexad better encompasses the security considerations that apply to control systems and cyber-physical systems (Boyes, 2014b); however, it does not fully
address the need for systems to be trustworthy.
The United Kingdom Government has supported the
development of a publicly available specification for
trustworthy software, where trustworthiness is based
upon five facets: safety, reliability, availability, resilience, and security (BSI, 2014). It is therefore proposed
that, in considering the cyber-resilience of the complex
systems in the supply chain, we should augment the
Parkerian hexad with two additional attribute…
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