FDA critical in the face of cyber breaches
Cyber breaches and insider threats are the fastest growing security risks facing businesses today and this is driving increased investment in forensic data analytics (FDA), a study by Ernst and Young (EY) reveals.
EY's 2016 global forensic data analytics report surveyed 665 executives across 17 countries and examined the current use of FDA tools to investigate incidents or manage risks — including "insider threat risks" such as malicious internal employees stealing, manipulating or destroying data.
"In today's digital world, there are rapidly expanding opportunities for innovation and growth. Unfortunately, these new opportunities have also brought new fraud risks in the forms of cyber breaches and internal threat," the report states.
"Companies need to recognise the full spectrum of value that FDA can bring — far beyond fraud detection — and be more aggressive in its implementation."
According to the report's findings, Australian executives were among the most likely to report an increase in concern about cyber breach and insider threat risks, with 80 per cent saying their level of concern had either significantly or slightly increased. This was noted to be second only to the UK (at 83 per cent) and well above the global average of 62 per cent.
EY's fraud investigation and dispute services managing partner for Oceania, Rob Locke, said boards and senior management needed to work together to ensure that FDA is incorporated as a critical aspect of their organisation's risk management and compliance programs moving forward.
"For all organisations, the threat of cybercrime is an everyday reality, posing a dynamic and relentless challenge," he said.
"Given the current regulatory enforcement environment and market reaction to instances of alleged corporate fraud, bribery and cyber breach, having a robust and effective FDA program in place is more important than ever."
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
