Question

Mail Med Inc. (MMI), a pharmaceutical firm, provides discounted prescription drugs through direct mail. MMI has a small systems staff that designs and writes MMI’s customized software. Until recently, MMI’s transaction data were transmitted to an outside organization for processing on its hardware.

MMI has experienced significant sales growth as the cost of prescription drugs has increased, and medical insurance companies have been tightening reimbursements in order to restrain premium cost increases. As a result of these increased sales, MMI has purchased its own computer hardware. The data processing center is installed on the ground floor of its two-story headquarters building. It is behind large, plate-glass windows so that the state-of-the-art data processing center can be displayed as a measure of the company’s success and attract customer and investor attention.

The computer area is equipped with halon gas fire suppression equipment and an uninterruptible power supply system. MMI has hired a small computer operations staff to operate its data processing center.

To handle MMI’s current level of business, the operations staff is on a two-shift schedule, 5 days per week. MMI’s systems and programming staff, now located in the same building, have access to the data processing center and can test new programs and program changes when the operations staff is not available. Because the systems and programming staff is small and the work demands have increased, systems and programming documentation is developed only when time is available.

Periodically, but not on a scheduled basis, MMI backs up its programs and data files, storing them at an off-site location. Unfortunately, due to several days of heavy rains, MMI’s building recently experienced serious flooding that reached several feet into the first-floor level and affected not only the computer hardware but also the data and program files that were onsite.

Requirements:

1. Describe at least four computer control weaknesses that existed at Mail Med Inc. prior to the flood occurrence.

1. Ensure the weakness are described as per the Case Study
2. Base your analysis on General Controls for Technology

2. Describe at least five components that should be incorporated in a formal disaster recovery plan so that Mail Med Inc. can become operational within 72 hours after a disaster affects its computer operations capability.
   1. Ensure that your 5 Components are based on Business Continuity Planning

3. Identify at least three factors, other than the plan itself, that Mail Med Inc.’s management should consider in formulating a formal disaster recovery plan.
   1. Ensure you focus on the question facts and details
   2. Ensure that all information sources have been cited in your presentation
   3. Be prepared to answer Questions

Answer 1