Sample Answer
Addressing Cybersecurity Risks in a Technology-Driven Automotive Industry
Introduction
In today’s digital landscape, risk management has become a strategic necessity for global corporations. For Tesla, a leader in electric vehicles (EVs) and autonomous driving technologies, exposure to cybersecurity risks poses a growing organisational challenge. Tesla operates in over 30 countries and depends heavily on interconnected systems, over-the-air software updates, and artificial intelligence. While this technological innovation differentiates Tesla, it also introduces serious risks such as system hacking, data breaches, and operational disruptions.
The growing dependency on cloud-based systems and customer data amplifies the need for a robust and adaptive risk management framework. This research proposal explores cybersecurity risk management at Tesla, aiming to identify gaps in current practices and propose an improved framework aligned with international standards.
Problem Statement
Tesla’s risk management challenge lies in its exposure to cybersecurity threats across its product and operational ecosystems. Vehicles rely on networked software that can be exploited by cyberattacks, leading to potential system control loss, data leaks, and reputational harm. According to Deloitte (2023), over 70% of connected car manufacturers reported attempted cyberattacks in the past year.
Tesla’s direct connection between product performance and customer data management makes this risk uniquely complex. The company’s over-the-air update system, while efficient, creates opportunities for unauthorised interference. The problem is the insufficient visibility and preparedness in managing cybersecurity risks across its global digital ecosystem.
Hence, this study proposes to analyse and strengthen Tesla’s cybersecurity risk management framework, with a focus on resilience, detection, and preventive strategy.
Research Aim and Objectives
Aim:
To develop a strategic framework for improving Tesla’s cybersecurity risk management to ensure operational resilience and stakeholder trust.
Objectives:
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To critically analyse Tesla’s current risk management structure concerning cybersecurity.
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To identify key vulnerabilities in Tesla’s technological ecosystem.
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To review global best practices in cybersecurity risk management across technology-led industries.
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To propose a risk management framework addressing detection, mitigation, and response strategies for Tesla.
Literature Review
The Evolving Nature of Risk Management
Risk management has evolved from reactive measures to a proactive, integrated process (Hopkin, 2018). Modern corporations require a dynamic approach that blends traditional control systems with predictive analytics. Enterprise Risk Management (ERM) models, such as those defined by the COSO framework, emphasise the integration of risk identification into strategic decision-making (Fraser & Simkins, 2021).
Cybersecurity as a Strategic Organisational Risk
Cybersecurity is now a strategic rather than purely technical concern (Renaud & Flowerday, 2019). Organisations like Tesla, which rely heavily on interconnected digital systems, face operational, financial, and reputational threats from cyber incidents. Karanja and Rosso (2020) highlight that technological innovation increases exposure to external attacks, necessitating robust governance models and employee awareness programmes.
The Automotive Industry and Cyber Threats
The automotive industry’s move towards smart, autonomous systems has magnified vulnerability. According to Accenture (2022), vehicle-to-everything (V2X) communication systems create over 150 potential attack vectors per vehicle. Tesla’s vehicles use continuous connectivity, making real-time monitoring essential. Studies by Papakonstantinou and Mouzakitis (2021) suggest that cybersecurity frameworks in automotive firms must integrate both IT and operational technology (OT) defences.
Risk Culture and Human Factors
Cultural dimensions play a critical role in organisational risk behaviour. Employees’ perceptions of accountability and awareness influence the success of cybersecurity programmes (Bada & Nurse, 2019). A study by the European Union Agency for Cybersecurity (ENISA, 2023) emphasises that training and internal culture are key to mitigating human-error-related breaches, which account for over 40% of cyber incidents.
Theoretical Foundation
This research is anchored in the Risk Management Maturity Model (RMMM), which assesses an organisation’s risk processes on a scale of initial, repeatable, defined, managed, and optimising stages. It also draws upon the Socio-Technical Systems Theory (STS), which highlights the interaction between people, technology, and environment in managing organisational risks (Trist & Bamforth, 1951). These theories collectively guide the identification and structuring of Tesla’s risk management challenges.
