DBMS are very important for organizations to understand and properly utilize. The DBMS can increase productivity tremendously, however, there are also risks to security. The company must know how to impose the proper security measures to verify that the information stored is safe. When the information is not kept secure there is a great chance for criminal activity and there have been several cases at banks where this has happened.
A database management system can tag, retrieve and manipulate data quickly and efficiently, which simple spreadsheet applications still cannot do. The DBMS can also structure files, store data and link records.
Example 1: A company has a system for HR files and different system for payroll. These two systems can link the files for each individual and the user can easily navigate from one employees HR file to their payroll file. This is an example where it is essential that the company have a very high attention to the security of their DBMS.
Example 2: Files are structured in an easy way to understand. A college has electronic files on all students. There are files for all of the interaction that the staff from the college have had with the student, all documents pertaining to the financial aid, attendance and all other relevant material is housed in the DBMS and is in the same location in each students file. This is another instance where security of files is of the upmost importance. A breach in the information could lead to serious violations of FERPA.
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