Welcome!

Big Data Journal Authors: Carmen Gonzalez, Elizabeth White, Keith Cawley, Roger Strukhoff, Jason Bloomberg

Blog Feed Post

2013 Corporate Risk Hotspots

Leading corporate risk prevention consultancy Riskskill (http://www.riskskill.com/), a division of UKFraud, has opened the New Year with a list of what they believe are the 8 biggest corporate risk hotpots faced by management in 2013. The hotspots are:

1. Fraud. With fraud set to reach increasingly high levels as a reflection of economic conditions, corporations face their own battle with those who are determined to defraud them. In 2013, supply chain fraud will be a major growth area, as squeezed suppliers face temptation to cheat, often using IT systems to cover their tracks. This type of fraud can range from simple 'weights and measures' issues through to credit based fraud and professionally planned attacks. As a result, procurement fraud is also set to reach record levels this year, where those charged with purchasing, face a range of temptations, including bribes from suppliers. More generally, internal fraud too is running at its highest level.

The UK government's National Fraud Authority (NFA) has produced an annual survey of fraud. For the last 3 years it has reported estimated fraud losses that are, in general terms, doubling each year. The fraud prevention market is braced for a repetition of this trend with an increase in the estimate of fraud losses expected again.

2. Cyber Crime Attacks. Such intrusions will remain an on-going concern in 2013. Already, the daily number of automated attacks on bank and retailer systems runs into the millions. Corporations are especially vulnerable where they have ventured into online trading, as the customers are faceless and there is comparatively little time to check the efficacy of the client's details. Controls over 'apps', such as payments through mobile and NFC (Near Field Communication) devices are also on-going risks that are growing as these solutions evolve. Technically skilled fraudsters and self-styled cyber-warriors' love such conditions and it is a constant race for 'switched on' payment processors to find the 'security holes' before such people actually cause havoc.

In addition, with so much high quality customer data reaching criminal hands and seemingly frequent high-profile data-security breaches through cyber-crime, it is harder than ever to tell the good and bad guys apart. 2013 will therefore see an increasingly greater emphasis placed upon PCI DSS and other data-security and integrity issues. There will also be continuing government interest in talking about this subject.

3. Social and Other Media Related Risks. The huge rise in different types of mobile device platforms along with the corresponding growth of social media sites now poses a huge reputational challenge for corporations. Within minutes, organisations can be the victim of blistering customer backlashes which might or might not be justified. Many corporations are making a start by attempting to formally control how their own employees release company or workplace information through social media. The number of reported dismissals and legal cases for acting irresponsibly through social media is soaring. However, beyond this there are increasingly huge risks posed by being seen to 'get it wrong' at the 'social-communications' front line. 2013 could well see a significant rise in the ownership of social media policy by corporate communications management.

4. Silo Mentality. Borne out of the desire to conduct business correctly, increasingly complicated silo structures have grown up in the corporate world, with the corporate tsars of compliance vying for power with those running policy, risk and traditional management functions such as IT and finance. It is possible that key decisions such as fraud policy, for example, will fall between these silos so that one either finds managers that are only partially responsible for an issue or a whole gaggle of managers who all feel that something is 'their bag'. The only solution is to have cross-function internal teams working closely with non-execs to allocate and refine roles and responsibilities.

5. Big Data Risks. As a result of corporate compliance and customer contact drives, organisations now hold increasingly huge volumes of data such as customer files. This development does pose its own data breach risks. However, the evolution of the 'big data' culture will also deliver huge benefits in 2013. Recent improvements in business intelligence and data analytics technology have delivered significant benefits for those working to manage big data projects along with those focussed on the risk and compliance issues raised.

Companies can now monitor hundreds of millions of transactions continuously for patterns of potential fraud, cyber-attacks or money laundering. Often this is happening at speeds many times faster than even a year ago. It also allows marketing professionals to make more incisive assessments of customer behavior and therein to tailor and fine tune campaigns accordingly.

6. Credit Risk Losses v Profitable Lending. Banks and other organisations, such as retailers, are under pressure from shareholders, the media and wider stakeholders to avoid bad-debts on one hand, whilst increasing profitable business lending on the other.

There is a potential risk of a lose, lose situation developing where once again such pressure leads to bad financial products and the risks of mis-selling and bad debts from over-stretched customers.

To take retail as an example, store-finance schemes and other 'loyalty' lending products face mounting credit exposures and losses through debt defaults, and write-offs.

7. Legal Claims. Whenever there is a downturn in the economy, people seek-out legal redress from anywhere that they can find it. The insurance industry and local authorities are tired of the 'slips and trips' type scenarios and is fighting the continual rise in these cases. However, many organisations seriously underestimate how big the potential legal risks can be. They are likely to face even greater pressure on this front though in 2013, as the TV ad style accident and PPI lawyers start to look for the next big thing.

8. Environmental, CSR and Sustainability Risks
Often the investment in 'environmentally friendly' and wider 'social responsibility' issues and other 'sustainability initiatives' will be finely calculated parts of a wider 'corporate score-card'. In more difficult economic times, these broader social and 'green' initiatives can suffer; the financial commitment made in the good times can also damage the longer-term investment, security and stability of businesses when things are tighter. So there is a longer term balancing of the risks required - i.e. the corporate social responsibility commitments flagged on the company's website need to be measured against the real-life, long-term trading conditions. As reputation 'can be all', corporates need to make sure that long-term CSR commitments aren't ultimately suspended or frozen with the risk of damaging their hard won reputations.

"From our research and experience of many businesses, we can see that most organisations are needlessly at risk in a number of areas," says Bill Trueman CEO of Riskskill. "Often the potential and consequential losses will be a major threat to businesses performance. To put them right and protect our businesses, we need to make sure that our processes, procedures and systems are clear, tight, ordered and well managed. Whilst the risks can usually be identified quickly and effective plans drawn up, it usually takes a little help and some wider corporate consensus to get things done. External risk management specialists, free of internal politics and silo rivalries, can help organisations appreciate quickly the level of risk they are running and plan accordingly. Strong internal risk management teams can also help combat the risks. However, the first step necessary for many corporations in 2013 is to recognise the risks they run and the need for change itself. Until they do, our role is to highlight the risks most likely to be faced."

Ends

About Riskskill (http://www.riskskill.com/)
Part of the acclaimed UKFraud operation, Riskskill delivers 'total risk' assessments for major corporations, solving problems and engineering bespoke risk reduction solutions in organisational, management, financial control and IT.

The assessments analyse all areas where organisations are at risk including: fraud, credit risks, counterparty or partner risks, cyber crime breaches, bad debt management, and the oversight and control of other write-offs along with compliance penalties and legal-case losses. Having identified specific areas of risk, Riskskill drafts detailed business and IT system change plans. The plans are then backed up by comprehensive coaching, training and mentoring programmes, which target the engineering of ground-up (but also top-down) solutions throughout the client's organisation, people, processes, management and systems.

For Further Information please contact:

Bill Trueman
Riskskill
+44 20 8133 7575
[email protected]

Or

Leigh Richards
The Right Image
+44 844 561 7586
+44 7758 372527
leigh.richards@therightimag[email protected]

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

@BigDataExpo Stories
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is n...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!...
The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential. The DevOps Summit at Cloud Expo--to be held November 4-6 at the Santa Clara Convention Center in the heart of Silicon Valley--will expand the DevO...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation...
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, B...
Quantum is a leading expert in scale-out storage, archive and data protection, providing intelligent solutions for capturing, sharing and preserving digital assets over the entire data lifecyle. They help customers maximize the value of these assets to achieve their goals, whether it’s top movie studios looking to create the next blockbuster, researchers working to accelerate scientific discovery, or small businesses trying to streamline their operations. With a comprehensive portfolio of best-i...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series ...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, will discuss ho...
Dyn solutions are at the core of Internet Performance. Through traffic management, message management and performance assurance, Dyn is connecting people through the Internet and ensuring information gets where it needs to go, faster and more reliably than ever before. Founded in 2001 at WPI, Dyn’s global presence services more than four million enterprise, small business and personal customers.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. ...
SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer's customers range from Web startups to global enterprises. Products and services include bare metal and virtual servers, networking, turnkey big data solutions, private cloud solutions, and more. SoftLayer's unique advantages include the industry's first Network-Within-a-Network topology for true out-of-band access, and an easy-to-...
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today’s databases are anything but agile – they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
Despite the fact that majority of developers firmly believe that “it worked on my laptop” is a poor excuse for production failures, most don’t truly understand why it is virtually impossible to make your development environment representative of production. When asked, the primary reason for the production/development difference everyone mentions is technology stack spec/configuration differences. While it’s true, thanks to the black magic of Cloud (capitalization intended) with a bit of wizard...
SYS-CON Events announced today that AppDynamics will exhibit at DevOps Summit Silicon Valley, which will take place November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Digital businesses like yours need a way to turn data into actual results. AppDynamics is ushering in the next digital age – the age of the software-defined business. AppDynamics’ mission is to deliver true application intelligence that helps your software-defined business run faster, leaner, and more ef...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In their General Session at 15th Cloud Expo, Phil Jackson, Development Community Advocate at SoftLayer, and Harold Hannon, Sr. Software Architect at SoftLayer, to discuss how to take advantage of a multitude of compute option...