E R T N
P
X
E INIO
OP
Risk
management:
Internal control
and fraud
prevention
The number of corporate fraud cases are
increasing and the consequences are severe
– both financially and reputationally. Sergey
Ozhegov, Chief Executive Officer at SearchInform,
discusses why businesses and organisations must
adopt a proactive approach to risk management.
T
he growing
number of
corporate fraud
cases concern
competent risk
management
and information
security officers. According to PwC’s
2018 Global Economic Crime and Fraud
Survey, 49% of companies worldwide
have been victims of fraud and economic
crime. That number increased by 13%
over the past year.
The media and experts highlight
such incidents – corporate fraud
cases, information leaks and staff
incompetence are of great interest to
the public. The problem is not only that
of financial losses but also a tarnished
reputation. In the age of digitalisation,
companies are in crosshairs. One
negative post – travelling through social
www.intelligentciso.com
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Issue 10
Sergey Ozhegov,
Chief Executive Officer
at SearchInform
networks – spreads in the media rapidly
and widely.
Fighting consequences doesn’t bring
results since post factum control
concerns only past events. Prevention is
the basis of modern risk management.
The horizons of risk management are
very broad, the experts are responsible
for regulatory compliance, IT security,
internal auditing, fraud prevention and
internal incident investigation.
The aim of any company is to simplify
and secure business processes, and
therefore it is necessary to promptly
identify and eliminate the source of
problems. Online monitoring helps to
fight against all types of HR risks. As
developers of corporate fraud protection
and financial losses prevention solutions,
we provide control over internal risks
connected with the human factor.
I think we all realise that insider activities
related to corporate data is a problem.
Employees who siphon databases
are able to disclose a company’s
business plans or leak personal data.
As well as creating advantages for
competitors, these activities could result
in bankruptcy and penalties in terms of
compliance regulations.
However, the above-mentioned threats
are evident and extensively discussed.
Let’s use the examples of real clients’
cases to consider hidden threats,
attributable to human factor risks.
Analysis of workplace morale and
employee loyalty management
Sometimes an employee can
demonstrate negative emotions or
job dissatisfaction to colleagues and
thus undermine the team’s mood. An
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