13-00000
of read-write access to data sets. The volume de-
tection switch alerts the control program when the
volume is increased; this protects data from being
written upon. This switch provides additional pro-
tection for read-only volumes.
Insurance
If data security measures fail, the use of EDP
insurance can back-up or soften the blow. Every
business or person who now has an in-house computer,
operates or is a user of a service bureau, or trans-
mits data to a data center should be computer-secur-
ity conscious. Insurance is one of the back-up
measures if prevention fails. However, not all
business can afford or even need an elaborate and
comprehensive security system; thus, evaluation of the
information becomes necessary to determine those
sections of the system which require this protection.
The subject matter of ordinary insurance coverage
is physical damage to tangible property. In this
case, software and data are not covered. Business
interruption insurance protects you in the event of
fire or other interruptions to normal business but
does not cover the consequences. Boiler explosion
policies which also insure other heating mishaps do
not cover computer operations. Theft and employee
dishonesty are also insured in terms of general
risk. Valuable papers and records' coverage pro-
vides protection in the event of destruction of such
intangibles as notes and account receivable records
but does not include such computer media as valuable
papers. Public liability insures the company for
its acts or omission of acts which give rise to
claims by outsiders against the company.
Insurance can prevent an unfortunate event from
becoming a catastrophe. When a person buys an in-
surance policy, he knows that he will be indemnified
if a loss does occur.
Some of the insurance companies which write EDP
policies are the Saint Paul Fire and Marine Insur-
ance Co., Insurance Company of North America, The
Hear Insurance Co., and Royal Assurance of America.
Insurance premiums generally correspond to the
regular fire policy rates plus an added loading fac-
tor for the additional EDP perils.
Undoubtedly any computer installation, regardless
of the quality and level of its security system,
cannot approach the state of no risk of loss. Se-
curity is based on a "cost-benefit" concept; in
other words the cost of violating the system should
be greater than the gain derived therefrom.
References
"All About Time-Sharing Services." *Data Processing
Digest*. Vol. 18, No. 3, March, 1972.
Bairdston, Jeffrey N. "The Terminal that Thinks for
Itself." *Computer Decisions*. Vol. 5, No. 1,
January, 1973.
Barran, Peter. "Software Security." *Data Proces-
sing Digest*. Vol. 18, No. 4, April, 1972.
Bassman, Dennis K. "Privacy and Protection in Op-
erating Systems." *Computer*. Vol. 6, No. 1,
January, 1973.
Bry, M. Ilyn. "How Safe is Your System?" *Data
Processing Digest*. Vol. 18, No. 4, April, 1972.
Cannon, Frederik W. "Computers and Cryptology."
*Datamation*. Vol. 19, No. 1, January, 1973.
*Computer News*. Vol. 16, No. 6, June, 1972.
*Computer News*. Vol. 16, No. 10, October, 1972.
"Developments in Data Transmission." *EDP Analyzer*.
Vol. 11, No. 3, March, 1973.
Dickey, C. Lewis. "Securing the Computer." *Journal of
Systems Management*. Vol. 23, No. 2, February, 1972.
"Distributed Intelligence in Data Communication."
*EDP Analyzer*. Vol. 11, No. 2, February, 1973.
"The Emerging Computer Networks." *EDP Analyzer*.
Vol. 11, No. 1, January, 1973.
Girsdansky, M. B. "Cryptology, the Computer, and
Data Privacy." *Computers and Automation*. Vol.
21, No. 4, April, 1972.
Goldstein, Seth. "A New Life for Time-Sharing."
*Dun's*. Vol. 101, No. 1, January, 1973.
Hebditch, D. L. "A Simple Terminal Language for a
Database." *Computer Bulletin*. Vol. 16, No. 1,
January, 1972.
Koehn, Hank E. "Are Companies Bugged about Bugging?"
*Journal of Systems Management*. Vol. 24, No. 1,
January, 1973.
Murphey, Wayne E. and Daniel V. Olson. "Controlling
Access to Large Tape Files." *Data Processing
Magazine*. Vol. 14, No. 1, Spring, 1972.
Salzman, Roy M. and Arthur D. Little. "An Outlook
for the Terminal Industry in the United States."
*Data Processing Digest*. Vol. 18, No. 1, January,
1972.
"Security in Data Processing." *Data Processor*.
Vol. 16, No. 1, February, 1973.
Simis, T. L. "Telephone Service: The Rules of the
Game When the Game is Changing." *Computers and
Automation*. Vol. 21, No. 12, December, 1972.
"Toward Distributed Computing." *EDP Industry Re-
port*. Vol. 7, No. 6, January 17, 1972.
Van Tassel, Dennis. *Computer Security Management*.
Englewood Cliffs, N.J., Prentice-Hall, 1972.
Zaiden, Dennis J. "Special EDP Insurance: Who Needs
It?" *Data Processing Magazine*. Vol. 14, No. 1,
Spring, 1972.
Cerullo — Continued from page 9
Procedure for Withdrawal
Sixth, a procedure should be established for
withdrawal from the cooperative. If the withdraw-
ing firm has not been a member for a predetermined
time, perhaps one or two years, a sliding scale
penalty fee for withdrawal should be established.
Procedure for Admission
Finally, procedures must be determined to govern
the admission of new members into the cooperative.
Perhaps a unanimous affirmative vote by current mem-
bers should be required to admit a new member. The
current members should also decide if a newly admit-
ted member should be required to pay a predetermined
portion of the cooperative's startup costs and if
the cooperative should limit membership to firms of
the same approximate size as current members.
Conclusion
With due care taken in following the above steps,
establishing a successful cooperative service bureau
should be relatively easy. Companies would be well
advised to consider the idea seriously, for cooper-
ative service bureaus offer a viable and in many ways su-
perior alternative to the more costly inhouse computer
and the less satisfactory outside service bureau.
Footnotes
1. *Computers in Business: An RIA Survey of Users and
Nonusers* (New York: Research Institute of Ameri-
ca, 1969), p. 4.
2. Ibid., p. 17.
3. Michael J. Cerullo. "Service Bureaus: User Ap-
praisal." *Datamation*, Vol. 18, May 1972, p. 86.
4. Ibid., p. 89.
5. ADAPSO Eighth Management Symposium. "How to Op-
erate a Service Bureau for Profits." 1963, p. 49.