Intelligent CISO Issue 10 - Page 41

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 | 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 41