a)

1. Vehicle manufacture has expensive infrastrucutre

2. Small range – less diversified
3. Small company, with different research areas – petrol, hybrid and electric – expensive to
keep up to date
4. Only focused on luxury market – less diversified
5. Strong competition from large motor manufacturers with multiple brands
6. Board unwilling to change
7. Forex differences due to importing parts
8. Danger of poor quality imports of parts
9. Dependent on imports for parts – could delay production
10. China especially known for disregarding intellectual property rights – could therefore use
LSB know-how to produce own vehicles
11. Commitment to funding of batteries could be expensive
12. Cultural differences between Europe and Japan (for battery)
13. Appears to depend on niche producer of batteries – makes after sales service more
expensive and difficult.
14. Dual listing is expensive, as have to comply with two stock exchange regulations
15. Have to prepare financial statements on two bases – could be expensive and prone to errors
16. Majority owned by wealthy family – may have undue influence.

(b) Only benefits of AR in the vehicle awarded marks

1. Reputation as manufacturer employing newest technology

2. Possibility of using AR for more than just road conditions, e.g. advertising
3. If cars become self-driving, the AR can be used as a way of delivering entertainment, e.g.
movies

(c)

1. Manufacturing self-driving cars face strong competition from large companies, such as
Google and other motor manufacturers
2. Completely outside their field of expertise, as it is an IT issue, not a car manufacturing issue
3. Additional new financing brings cash flow and interest rate risk
4. Decrease in R&D in other areas – may fall behind there
5. The new team may find it difficult working together as they are all new
6. Staff from across the world may have cultural differences
7. Promoting someone from outside the company to run this initiative may lead to
demotivation
8. Augmented reality may lead to distractions
9. LSB does not have access to the necessary data to test the vehicles.
10. Collecting personal information opens up the company to new data risks
11. Opting out, instead of opting in, is risky, as it is probably illegal to do it that way
12. Data integrity risk – relevance of information harvested from vehicles
13. Reputational risk if tech fails (If only stated it can lead to crashes without specifying
reputational risk – only 1 mark awarded)
(d)

MAX 5
1. Proper testing of all vehicles and parts (1)
2. Sourcing of quality parts (1)
3. Tone at the top (obfuscating facts, hiding problems) (1)
4. CEO and CFO acting in self interest (1)
5. Reporting structures / lack information – Board and Risk committee (1)
6. Testing of autopilot software with human test drivers (1)

(e)

MAX 5 (award mark for any creative solutions – not more than one per risk)
1. Negative publicity if it comes out / Too many people involved in company to keep
quiet (1) confidentiality agreements (1)
2. Not all vehicles might be serviced timeously (1)
3. Not all owners might service their vehicles with LBS workshops (1)
4. Trace and contact / offer free services (1)
5. Legal liability should accident occur (1)
6. Reconsider need for vehicle recall (1)

(f)

1. Monitoring of system, determine if updates needed (1)

2. Feasibility study (1)
3. System investigation (requirements, problems, restrictions (2)
4. System analysis (1)
5. System design / hardware compatibility (2)
6. Testing of software changes (through computer) (1), test system not life (1)
7. Authorization role out of upgrades (2)
8. Upgrade delivery method (internet or when come for service) (1)
9. Verification of installation (testing upgrade correct installed) (1)

(g)

1. Hacking risk
2. Due to VPN use, unable to see what data was transmitted
3. Malware risks due to torrent site
a. Viruses/Worms/Trojans
b. Ransomware
c. Spyware/Key loggers

Not: Phishing

Controls

1. Firewall
2. Regular password changes
3. Prevent VPN
4. Limit software installation to independent IT department
5. Scan network to detect outside activities
 6. Review logs of computer use to find anomalies such as VPN use
7. Antivirus / Antimalware / Antispyware software
8. Patch management
9. Encrypt data
10. Disciplinary action against unauthorised use of network
11. White hack hackers/ penetration testing

Not the following (preventative and detective controls)

Backups

Just “passwords” is not good enough. Too standard

Policies and training – this clearly did not work in any case