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CAUSES AND EFFECTS OF CONFIDENTIAL INFORMATION IN BUSINESS ORGANIZATION

ABSTRACT

Leakages of confidential information are an action or result of disclosing of secret information.  While record is a document preserving piece of evidence or information constituting an official account of something that has been said and occurred etc. Having known the meaning of the key words we can now see that leakages of confidential information are all about the disclosure of official documented records.  Based on the foregoing, we see the causes and effects of leakages of confidential information as those factors which could warrant the disclosure of official records to the public or the wrong hands thereby decrementing the information therein.  And the effects of information disclosure, could affect a business organization adversely, which could go a long way to collapse a business setup through adulteration (inferior and imitation).  Therefore, it would be wise to find out who or those responsible for this ugly trend in our business organizations.

CHAPTER ONE

 INTRODUCTION

 1.1 BACKGROUND OF THE STUDY

According to Njoku, (2005) “one can say that the journey of a document is not an easy one, but could be by saying that the security of a document is an easy one if certain principles are adhered to.

Causes and effects of leakages of confidential information has remained un-rectifiable factor in business organizations, and also professional offices.  But the vent and channels through which these matters get out of place remains the bane of some productive organizations. This is because important files or figures are exposed to those who are not supposed to have access to them.

Confidential information is those official issues with paramount importance to business organizations.  Also they can be those private matters appertaining to office affairs, which also could be seen as the life wire of a business.   And because of its importance should be kept away from the limelight of the general public.

Leakages of confidential information are the unauthorized disclosures of certain information or bringing them to limelight of those who are not supposed to have access to them. If the information is mismanaged and there is leakage, there would be exceptional great damage to the organization. (Ihekwoaba, 2005).

Business organizations are body of persons organized for some commercial activities aimed at making profit for themselves; it can be publicly or partly owned. There is a “maxim” that says business is “secret”, therefore official issues which are matters that are very important to the organization should be kept secret.

Causes and effects of leakages of confidential information are believed to be numerous, but some of them will be elaborated to the best of my knowledge. Confidential information should not be kept at the reach of everybody in the organization. This is because they form major part of management decisions and actions. The causes of information leakage must be those who have access to them.

1.2 STATEMENT OF THE PROBLEM

Causes and effects of leakages of confidential information have always been of great concern to both private and public business organizations. It is an amazing thing to some of the Directors and Managers to discover, that it is within their midst that those highly important facts of the organization get out of place.  In some instances, their subordinate like the secretary, clerk, typist and manager are also accused of being responsible for the circulation of confidential information in the organization.  The perpetrators of this act have persistently continued to device a new means of getting access to official issues.  This study is embodied on, to find out the best way of keeping official secret intact and raid of disclosures.

Commercial confidentiality

Some legal jurisdictions recognise a category of commercial confidentiality whereby a business may withhold information on the basis of perceived harm to “commercial interests”.[14] For example: soft drink giant Coca-Cola’s main syrup formula remains a trade-secret.

Banking confidentiality

Main article: Bank–client confidentiality

Public policy concerns

Confidentiality agreements that “seal” litigation settlements are not uncommon, but this can leave regulators and society ignorant of public hazards. In the U.S. state of Washington, for example, journalists discovered that about two dozen medical malpractice cases had been improperly sealed by judges, leading to improperly weak discipline by the state Department of Health. In the 1990s and early 2000s, the Catholic sexual abuse scandal involved a number of confidentiality agreements with victims.[16] Some states have passed laws that limit confidentiality. For example, in 1990 Florida passed a ‘Sunshine in Litigation’ law that limits confidentiality from concealing public hazards.Washington state, Texas, Arkansas, and Louisiana have laws limiting confidentiality as well, although judicial interpretation has weakened the application of these types of laws.[18] In the U.S. Congress, a similar federal Sunshine in Litigation Act has been proposed but not passed in 2009, 2011, 2014, and 2015.

1.3 PURPOSE OF THE STUDY

The major purpose of this study was to determine the causes and effects of leakages of confidential information in business organizations. Specifically the study will attempt to;

    Determine the concept of official secrets

    Identify workers who would be responsible for the act of leakages

    Identify sources of official secrets in business organizations

    Determine the consequences of leakages of confidential information in business organizations

    Evaluate how confidential information can be controlled and protected.

    Proffer remedies

1.4 OBJECTIVE OF THE STUDY

    To determining the concept of official secret?

    To determining what identify the sources of official secrets in business organizations?

    To determining what confidential information be controlled and protected?

    To determining what responsible for leakages of confidential information?

    To determining what consequences of information leakages in business organizations?

    To determining the remedies?

1.5 RESEARCH QUESTIONS

    What is the concept of official secret?

    How can you identify the sources of official secrets in business organizations?

    How can confidential information be controlled and protected?

    Who are those responsible for leakages of confidential information?

    What are the consequences of information leakages in business organizations?

    What are the remedies?

1.6 SIGNIFICANCE OF THE STUDY

The worthwhile ness of this piece of work has put in place the need to state some of the significance leakages of confidential information business organizations.  Because of the strategic nature of the information, over the years, organizations have spent tremendous amount of money (resources) in hope to protecting their important information.

However, efforts have been made in focused on preventing outsiders from hawking into the organizations, educating and securing data at rest.  According to analyst, the majority of all leakages are as a result of unintentionally information loss from employees and partners, both internal and external.  The average information leakage costs organization approximately N182 per record (according to pneumonic institution).

The high cost of a breach can have a profound effect on organizations, market presence, and competitive advantages as a result of damage to brand and reputation and loss of customers.  As organizations invest millions in business systems, increasing availability information to build or maintain a competitive edge there, remain a slew of security related considerations.

1.7 SCOPE OF THE STUDY

The scope of this study is specifically on causes and effects of leakages of confidential information in business organizations. The study covered three selected business organizations in Owerri, Imo State. The organizations include Nigerian Bottling Company (coca-cola), Power Holding Company of Nigeria (PHCN), and Nigerian Tele-communication Plc (NITEL).

1.8 LIMITATIONS OF THE STUDY

In the process of carrying out this study, a lot of unit action came up as limiting forces and they include the following forces.

    Lack of adequate fund to cover great part in the case of interview and observations.

    Restrictions possessed by some Executives and Secretaries in the company who are unwilling to give out information freely.

    Shortness of time also affected the research work negatively.

CHAPTER TWO

Literature review

The role of information in any company is great. Access to other people’s information gives companies an edge in the competition, the leakage of important data leads to financial losses and even liquidation of companies. Therefore, secret corporate information must be protected at all stages of use: during creation, movement and storage.

What does information leakage entail?

The development of information technology increases the risk of data loss. Any interference in enterprise systems risks harming the company, therefore, when using electronic media and transferring information, it is better to tighten control over channels. It is especially important to protect trade secrets, inventions, new developments, databases, and work correspondence.

The main negative consequences of a leak of confidential information are direct financial damage; deterioration of the company’s reputation; loss of customers, partners, suppliers, product markets, etc.

The amount of damage caused by information leakage depends on many factors:

lost profits due to a damaged image;

penalties;

compensation payments for claims;

decrease in the value of the company’s shares when it comes to joint-stock companies, if the data hit the insider information market;

direct damage: the cost of developing design and technological solutions, lost tenders, non-concluded contracts and other circumstances.

It is difficult to fully assess the volume of losses, especially since there are no such statistics in Russia, and business is guided by the experience of foreign companies affected by the leak of confidential information. For example, according to the Cost of Data Breach study, in the United States, the loss of customers costs the average company $ 4.13 million, and at least another $ 1.5 million is spent on investigation, rehabilitation and legal costs.

Ways of disclosing information

Research in the field of information security confirms that most of the leaks are due to problems within the company itself, and not due to external hacks or hacker attacks.

Confidential information most often leaves the company through the fault of employees. Actions that lead to incidents pump:

accidental or deliberate disclosure of confidential data;

bribery, blackmail and other illegal actions by competitors or criminals who persuade company personnel to cooperate;

lack of inappropriate control and non-compliance with the conditions for ensuring information security;

exchange of production experience;

lack of control over how employees use enterprise information systems;

conflicts between employees, which can be provoked by random selection of personnel, lack of steps to build a team, psychological incompatibility of employees and other personnel problems.

The types of information that are most harmful if leaked

Leaks of confidential information depend on the type and format of corporate data storage. Attackers steal:

financial and project documentation of the enterprise: accounting reports, business projects, contracts, development plans and other documents;

personal information: customer bases and personal data of company employees;

technological, technical, design documentation, know-how, etc .;

documents for internal use: presentations, training programs for personnel, service instructions, etc .;

technical data that can be used to access the enterprise network: passwords, logins, information about protection methods, network topology, etc .;

information that can worsen the reputation of the company or management: customer complaints, negative correspondence with employees, meeting recordings, etc.

Actions in case of information leak

To combat the consequences of a leak, several steps are required:

Locate and protect the source of the leak.

Identify people who are interested in personnel leakage with access to confidential information.

Identify information that may have been affected by the leak.

Warn people about the incident who could be harmed by the stolen information.

Contact law enforcement if necessary.

Minimize damage as much as possible.

The analysis of user activity on the corporate network helps to find out who is involved in the information leak. For this purpose, monitoring systems are used that analyze information flows within the enterprise, or DLP systems, which are designed to protect against information leaks from the corporate network and from insider actions.

The next step is to identify the people who received the information from the enterprise. This will help you understand how and to whom the disclosure of information valuable to the enterprise is threatened. The search depends on what data is stolen. Next, you need to establish whether there was a passing leak of other information. Thus, all damage and consequences for the company and partners are assessed.

It is imperative to notify those who may have suffered from a data breach. Most organizations try to hide the incident, but withholding often leads to the opposite effect, and companies fail to minimize the damage. In addition, persons who could potentially suffer from a leak, but are not aware of it, do not take measures to protect their interests. As a result, when the public becomes aware of the incident, the company will lose trust and loyalty from both customers and partners.

In case the leak is serious, it is better to contact the law enforcement agencies. With the help of the law, it is increasingly possible to punish those responsible for data leaks and other cybersecurity incidents. Despite the fact that there are practically no show trials in courts that could force employees to take responsibility for the storage and use of confidential information. DLP systems help to collect evidence, which monitor transmission channels, generate reports and automatically alert about potential threats.

How to minimize damage

To mitigate the damage from an already existing leak of confidential data, you need to speed up the business processes to which the data is related. For example, as soon as possible to bring a developed model to the market or close a large deal. Once the business processes are completed, the stolen information is no longer relevant.

If it is impossible to speed up the process for objective reasons, additional resources should be attracted. If we are talking about a new model, an advertising campaign, demonstration of products at the next exhibition, publications in the media will help. Similar measures apply not only to technological developments, but also to marketing research, business planning and other areas of activity.

Disclosure of information in the public field, indicating the culprit in the incident and, if known, the customer, will also help to reduce the consequences of the leak. Such an option, of course, is possible only when there is convincing evidence of the involvement of persons in theft or “leaking”, otherwise the applicant will receive counter-charges – of libel.

To protect yourself from lawsuits and reduce compensation, you need to warn about the leakage of customers, business partners, and employees involved in the information. You can offer monetary compensation for damage, the costs will all be lower than for payments by court order plus payment of court costs.

It is impossible to predict when and what information stolen will cause damage. The best way to avoid the consequences of a leak is to prevent the leak itself. This requires comprehensive protection: control various channels of information transmission, detect and block confidential data in case of violation of security rules. It is important to use reliable security systems that not only prevent theft and leakage of information, but also identify those responsible. Only comprehensive solutions can reduce the impact of confidential information leakage.

Confidentiality, or not disclosing certain information, is important in a wide range of jobs.

Confidentiality matters for legal and reputational reasons, and it also matters because your future employment may depend on it.

Some information is protected by law in several countries, including personally identifiable information and also ‘trade secrets’.

It is therefore important to understand the nature of confidentiality, and how to ensure that you comply with legal or ethical guidelines.

What is Confidentiality?

Confidentiality means the state of keeping secret or not disclosing information. It comes from confide, meaning to trust someone or tell secrets to them.

Confidential information, therefore, is information that should be kept private or secret. Confidentiality is simply the act of keeping that information private.

Types of Confidential Information

There are, broadly speaking, five main types of confidential information.

1. Employee Information

In the course of the job, you will hear information about individuals within your organisation. Some of this will be unsubstantiated gossip, and some will be information that you have come across in the course of your work, especially if you are a line manager or you work in human resources.

Handling Gossip

It goes without saying that you should not spread gossip, especially if you do not know if it is true. Even just asking someone else whether they know if it is true that x did y can have huge consequences for x’s reputation.

As a general rule, if you would not ask the person concerned, or mention it to their face, don’t mention it behind their back.

Get a reputation for integrity, rather than one for gossiping.

If you come across private information in the course of your work, including any information that identifies an individual (name, address, maiden name and so on), then you should not disclose it to others. This also applies to information collected at interviews about ethnic background, disabilities and so on.

There are legal requirements about keeping that kind of information safe and secure in many countries. If you break those laws, you are likely to be personally liable and potentially face prosecution.

2. Managerial Information

Managerial information includes both information about individuals, such as disciplinary action, and also about broad management actions such as planned redundancies or employee relations issues.

Some types of managerial information will become public in due course—such as planned redundancies—and other information may remain confidential for much longer.

3. Organisational Information

Organisational information is also known as business information or ‘trade secrets’.

The definition covers anything not in the public domain that helps the organisation do its work better or more efficiently. It would therefore include, for example, information about industrial processes, budgets, costs, forecasts, and even customer contact information.

WARNING!

Sometimes organisational information is covered by confidentiality agreements or contracts of employment. If you are tempted to disclose any information of this nature, you should check your contract first and, if necessary, get legal advice.

4. Customer or Contact Information

Customer and contact information is partially covered by ‘trade secrets’.

However, forthcoming changes to data protection law in Europe (and relating to any data held on a citizen of a European Union country) means that it needs to be considered and held differently.

If you think this may affect you or your company, you are advised to seek legal advice.

5. Professional Information

Some professionals — including doctors, lawyers and accountants — come across information about individuals or organisations through their professional position.

For example:

Doctors know about the details of their patients’ conditions and treatments;

Lawyers know about details of wills and court cases, some of which may be protected by law; and

Accountants will know about their clients’ tax and income.

These professionals are often bound by professional codes of conduct as well as formal legal requirements.

Casual vs. Legal Confidentiality

There is a distinction to be drawn between casual expectations of confidentiality and legal requirements.

There is information which you may be told, and asked to keep secret, but where the only obligation to do so is personal

For example, a colleague tells you that she is pregnant, and explains that she has not yet told anyone else and would prefer it not to be public for the time being.

She wanted to tell you because you are a friend/someone she trusts to cover for her if her morning sickness is bad/her line manager.

There is no absolute or legal requirement on you not to tell anyone else. However, be aware that if you do so, you will have broken her trust.

You would not expect her to be happy, and your reputation as someone to trust and rely on will be gone (and probably not just with her).

There is information that legally cannot be shared with other organisations or individuals except under certain very specific circumstances

For example, you may want to share or sell a list of customer contact details to another organisation. In many countries, you can only do so if you have obtained explicit consent from those customers.

Most personal information (that is, any information which is personal to an individual, such as national insurance numbers, full name, address, email address or similar) cannot, by law, be disclosed without consent.

You can also be sued if you share information that is individual to your employer with any of the company’s competitors, or disclose it in a way that may damage the share price. This includes information about employees, processes, or products that is not already in the public domain.

Protecting Confidential Information

If you regularly handle confidential information, you should take steps to ensure that you protect it adequately.

These should include, for example:

Ensuring that confidential information is always locked away at night, and not left unattended during the day;

Password-protecting sensitive computer files;

Marking confidential information clearly as such, and ensuring that paper copies are shredded before disposal; and

Ensuring that you only disclose confidential information to those who need to know.

When to Break Confidentiality

There are a number of circumstances when you may and must break confidentiality.

You may break confidentiality when:

The information disclosed to you suggests that something may happen or have happened that is not in the organisation’s interests. There may be a balance to be struck between the needs of the individual and the organisation.

If something has happened which is against your professional code of conduct, or which you believe to be wrong. Many organisations have codes to protect ‘whistleblowers’ but this is still hard to do, and you should be aware that there may be fall-out in terms of your organisational reputation.

You must break confidentiality when:

There is a possibility that a criminal offence has been committed, because you are obliged to report it to the police.

If there is suspected child abuse or abuse of another vulnerable person, even if this may fall short of criminal activity. Under these circumstances, you should be careful to explain to the child — or the person who has told you — what you intend to do and why, to make sure that they understand and will be protected during the process.

CHAPTER THREE

3.1 Methodology and procedure

In this research the researcher among other methods used the descriptive research method. The descriptive research is concerned with the collection, presentation, analysis and interpretation of data for the purpose of describing vividly existing conditions, prevailing practices and beliefs, attitudes, on-going procures etc. the descriptive research goes beyond the description of the conditions or phenomena to include discovery of meaning. It also focuses a discovery of trends that are developing. The main objectives of descriptive research is to get detailed and factual information about issues, events, problems and describe the events as they are.

The descriptive research method enabled the researcher to describe in a systematic manner causes and effects of confidential information in business organization

. The essentials of the descriptive research cannot be over-looked, it is a research that gives the true picture of the whole situation or problem. It gives the basis for eliciting possible policies for alleviating problems. It also saves time. The data for the descriptive analysis was generated through various types of data collection; they are interviews, which are structured interview and unstructured interview, also through an empirical investigation. They all will be discussed below.

INTERVIEWS:

Interviews involve eliciting information from the respondent through some verbal interaction between the interview and the respondent. It is a face to face interaction situation in which one person the interviewer questions, which are responded to orally. The questions which are properly framed, allows the respondent easy understanding of the information that are being sort for.

3.2   The empirical investigation

The researcher conducted a detailed empirical investigation in selected business organizations. The method here was based on sustained participant observation approach (Scott, 1965). Data were collected through interviews, study of secondary material and observation. The observation is an investigation method used to obtain direct information method used to obtain direct information on the behavior of individuals, objects or situations. It involves watching people, situations phenomena and getting first-hand information relating to particular aspects of such people, events, situations or phenomena.

Information relating to certain aspects of human behavior can only be obtained in the particular settings where such behaviors are exhibited. Use of interviews are discussed above. Secondary materials are those source of information which other people did not participate or witness the events. The author of a secondary source material tries to collect and synthesize a pool of materials, which include encyclopedia, dictionaries, textbooks, journals and periodicals, newspapers and magazines as well as publications. Extensive use was made of personnel interviews. In this research the researcher concentrated on focused interviews. This involved the use of guided questionnaire sheet which are designed to assist the researcher to obtain desired information from the respondents. This technique was aimed at giving the respondents the freedom to answer questions asked, while the interviewer occasionally directed the discussion towards the course that will enable him obtain the required information.

3.3   Reliability of data collected

interviews used where the structured interviews and unstructured interview. The structured interview is a rigidly standardized and formal kind of interview. The questions were presented to the different respondents, in the same order and choice of alternative responses, and it is restricted to predetermined list. The structured approach allowed for reliable data analysis. In the unstructured interview, which is a flexible type of interview which contains very few restrictions on the respondent’s answers, the respondents were encouraged to express their thoughts freely.

The secondary materials that were studies were those relating to internal topic. These include textbooks, publications of government, newspapers, journals and periodicals. The textbooks were gotten from the library to provide detailed information and knowledge. Generally, the textbooks provided interpretation in the topic. The government publications like books, pamphlets, e.t.c. from different government agencies and parastatals contain very rich information concerning the topic, they included statistical reports, research reports, official reports, laws and other materials that are not readily available elsewhere.

The newspapers on the other hand provided current information concerning peoples’ views and opinions in the area of study. The formed valuable sources of information from where good ideas have been obtained to be helpful in designing and executing a very good work

3.4 RESEARCH DESIGN

In this study, the research method had great emphasis toward the descriptive sample survey. This approach was adopted here because the researcher worked with a much number of potential variable of interest with little previous knowledge of theory that would inform us on where to begin.  It is considered that a more flexible and exploratory approach will be needed.

A possible compromise between the exploratory research of the single participant observer and a much more systematic and standardized approach is the descriptive sample survey.  In this sample survey, a premium is placed on certain kinds of standardization, here the research was concerned with the methodology areas.

This final to collect data in such a way that all respondents are confronted with rarely identical questions.This seems is concerned with sampling are the question of generalization in making results.  The third is with specifying standard criterion for data analysis procedure so that different analysis may reach similar conclusion based on the available data.

3.5 Population of the study

The available population of the affected states is two hundred and fourteen (200), the information was obtained from the records of various sources.

3.6 Instrument for data collection

Two instruments where used in the study and it yields a lot of contribution and contents.

i.     Oral Interview:  The research used face-to-face interview with the interviews with the respondents to obtain the necessary information needed from the organization.

ii.     Questionnaire:  The research used questionnaires to gather information from the respondents.  The questionnaire contains difference questions.  Some option from which the respondents were, required to choose

3.7 Validation of the instrument

The instrument was subjected to both content and face validity by supervision, after all the corrections, the validated instrument was taken back for conformation to ensure that suggestions and observation were incorporated.

3.8 Reliability of the instrument

The instrument was subjected to test, retest reliability test.  The result showed a good internal consistency.

3.9 Methods of data collection

The data for this study where obtained from primary data where obtained from respondents, through direct interview and questionnaire method.

The secondary data were obtained through the stocks of material from the researchers’ friends and associates and National library.  More so, an experience from observation was very helpful in this research work.

3.10 Methods of data analysis

The analysis of data was organized along the following lines.  Descriptive statistical analysis was used to indicate percentage scores of all the respondents. The calculation of respondents were equally drawn up on the table.

CHAPTER FOUR

Question one

Does confidentiality information have a strong impact on growth and development of business organizations?

Table one

S/N0RespondentsPercentage (%)
Yes17889
No2211

89% of the population agreed that confidentiality information have a strong impact on growth and development of business organizations. 11% said no

Question two

Is confidentiality information an effective means in influencing growth and development of business organizations?

Table two

S/N0RespondentsPercentage (%)
Yes12160.5
No7939.5

60.5% of the respondents said that confidentiality information is an effective means in influencing growth and development of business organizations. 39.5% disagreed.

Question three

Is there a relationship between confidentiality information and growth and development of business organizations?

Table three

S/N0RespondentsPercentage (%)
Yes10954.5
No9145.5

54.5% of the population said that there isrelationship between confidentiality information and growth and development of business organizations. 45.5% said no.

Question four

How would you categorize the relationship between confidentiality information and growth and development of business organizations?

Table four

S/N0RespondentsPercentage (%)
Strong12562.5
Yes7537.5

62.5% of the population said it is strong. 37.5% of the population said it is weak

Question five

Would you advise an increased spending on confidentiality information?

Table five

S/N0RespondentsPercentage (%)
Yes18894
No126

94% of the population said that they advise an increased spending on confidentiality information. 6% said no

References

https://searchinform.com/challenges/information-security/information-security-analytics/information-leaks/information-leakage-cases/consequences-of-information-leakage/
https://www.skillsyouneed.com/lead/workplace-confidentiality.html

Morgan, Thomas D. (1980). “Conflicts of Interests and the Former Client in the Model Rules of Professional Conduct”. American Bar Foundation Research Journal. 5 (4): 993–1002. doi:10.1111/j.1747-4469.1980.tb01046.x. ISSN 0361-9486.

 International Bar Association. “IBA International Principles on Conduct for the Legal Profession” (PDF). Retrieved 9 March 2021.

 Campbell v MGN Ltd [2004] UKHL 22, [2004] 2 AC 457.

 Coco v A N Clark (Engineers) Ltd [1969] RPC 41; [1968] FSR 415.

 Dally, Ann. “Playfair, William Smoult”. Oxford Dictionary of National Biography (online ed.). Oxford University Press. doi:10.1093/ref:odnb/35541. (Subscription or UK public library membership required.)

 Dr. Coburn’s Peculiar Privilege, 2 October 2009

 Beltran-Aroca, Cristina M.; Girela-Lopez, Eloy; Collazo-Chao, Eliseo; Montero-Pérez-Barquero, Manuel; Muñoz-Villanueva, Maria C. (2 September 2016). “Confidentiality breaches in clinical practice: what happens in hospitals?”. BMC Medical Ethics. 17 (1): 52. doi:10.1186/s12910-016-0136-y. ISSN 1472-6939. PMC 5009672. PMID 27590300.

 Notification Laws Archived 29 April 2009 at the Library of Congress Web Archives

 AR Waladkhani. (2008). Conducting clinical trials. A theoretical and practical guide. ISBN 978-3-940934-00-0

 “Professional Standards Authority – Home”. www.nhs.uk. Retrieved 17 March 2018.

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