Main Concerns with Off-Site Development

D.

The main concern a security analyst should have with the arrangement of a small electronics company using a contractor to assist with the development of a new FPGA-based device, with several of the development phases occurring off-site at the contractor's labs, is the potential risk of intellectual property theft, which is Option D.

FPGAs (Field Programmable Gate Arrays) are a type of semiconductor device that can be programmed and configured to perform specific functions. They are widely used in electronic products such as computers, telecommunications equipment, and consumer electronics. The development of a new FPGA-based device involves a lot of research and development, including the creation of custom logic designs and software programming.

When multiple parties are involved in the development of a new product, there is an increased risk of intellectual property theft. In the case of FPGA-based devices, the design files and programming code are particularly vulnerable to theft. These files could be easily copied and used to create a clone of the device or sold to a competitor, which could result in financial loss for the electronics company.

There are several ways in which intellectual property theft could occur when a contractor is involved in the development of an FPGA-based device. For example, the contractor's employees could copy the design files and programming code without permission. Alternatively, the contractor's computer systems could be hacked, and the files stolen by cybercriminals. Additionally, the contractor's employees could sell the intellectual property to a third party.

To mitigate the risk of intellectual property theft, the electronics company should take several measures. Firstly, they should perform a thorough background check on the contractor and its employees to ensure that they have no history of intellectual property theft or other criminal activities. Secondly, they should establish clear contracts and agreements that specify the terms of the collaboration, including ownership of the intellectual property. Thirdly, they should limit access to the design files and programming code to only those employees who need it to perform their work. Fourthly, they should use secure file transfer methods to transfer the files between the development sites.

In summary, the main concern a security analyst should have with the arrangement of a small electronics company using a contractor to assist with the development of a new FPGA-based device, with several of the development phases occurring off-site at the contractor's labs, is the potential risk of intellectual property theft. The electronics company should take several measures to mitigate this risk, including performing background checks, establishing clear contracts and agreements, limiting access to the design files and programming code, and using secure file transfer methods.