The first step to take in this situation would be to enforce the security policy. This is because the security specialist has identified several security vulnerabilities, such as the installation of personal software, default settings on the network OS, lack of software patches, and no requirement for regular password changes. Enforcing the security policy would address these vulnerabilities by implementing measures such as removing personal software, configuring appropriate settings on the network OS, installing software patches, and implementing password management policies. By doing so, the security specialist can improve the overall network security posture of the company.