11 - Data risk management and ethics Flashcards
What is the primary focus of data risk management?
Using data to stop bad actions and protect profit
This can lead to a safer and better business.
List the five pillars of managing risk and ethical compliance.
- Data privacy
- Data security
- Data ethics
- Data compliance
- Data fraud prevention
Define data privacy.
Determines how data is used internally, shared, collected, or stored, and the regulatory restrictions in which the business operates.
Define data security.
The practice of protecting data from unauthorized access, corruption, or theft throughout its entire life cycle.
What is data ethics?
The responsible use of data, doing the right thing for people and society even when no one is looking or checking.
What does data compliance ensure?
Data is organized and managed to meet enterprise business rules and legal and governmental regulations.
True or False: Data fraud is the deliberate fabrication or falsification of data for financial gain.
True
What is the motive in the context of data misuse?
The reason for committing a transgression.
What does the term ‘means’ refer to in data fraud?
The tools or methods to commit a crime.
What is the opportunity in relation to data security breaches?
The occasion for unauthorized access or misuse of data.
Fill in the blank: Data _______ involves ensuring data is legally collected and stored.
privacy
How can data ethics be promoted in business practices?
By ensuring transparency in the use of data in any business activity.
What problem did Jérôme Kerviel face regarding compliance at Société Générale?
He exploited internal compliance systems to commit unauthorized trades.
What is the significance of a ‘single source of truth’ in data management?
It helps automate processes and makes it harder for individuals to cheat.
What role does data play in stopping unethical behavior in organizations?
Data can limit the space in which employees can behave unethically.
What are some automated methods to detect data fraud?
- Anomalous invoicing patterns
- Spikes in activity
- Figures that won’t reconcile
Describe the outcome of the case study involving investment research at an investment bank.
It led to the creation of RIXML, improving transparency in stock recommendations.
What is one benefit of working with regulators in data management?
It creates a positive environment and mutual gain in addressing ethics and fraud problems.
What is a common barrier to effective communication between businesses and regulators?
Different cultures and a lack of understanding of data management.
Fill in the blank: Data _______ is crucial for identifying and mitigating fraud opportunities.
quality
What can improve data quality and help reduce fraud in business?
Removing duplicates and ensuring accurate data entry.
True or False: Data transformation can lead to increased motivation for data misuse.
True
What should be built into data projects from the start?
Fundamentals of data privacy and security.
What is the importance of data protection?
Data is valuable and needs to be protected from misuse.
When should data protection be implemented?
From the time the data is captured, not added as an afterthought.
What must be included in project proposals regarding data?
Methods of data protection, security, ethics, and fraud protection.
What is expected of ethical behavior in data management?
Ethical behavior is expected but does not always happen.
How can data help protect organizations?
By removing conflicts of interest or subjective decision-making.
What is key to compliance regarding employee behavior?
Visibility of employee behavior.
What does monitoring employee behavior involve?
Not just sounding an alarm when rules are breached, but also monitoring patterns of behavior.
What is the relationship between data sharing and regulators?
Limited data sharing can achieve results and boost trust between employers and regulators.
True or False: Sharing ideas about data analysis can create suspicion.
False.
Fill in the blank: Ethical behavior is expected but, for many reasons, does not always _______.
happen.
What can data analysis during investigations foster?
Collaboration and productivity.
What are the benefits of breaking down barriers in data sharing?
Creates more understanding during serious investigations.
What is a key factor in achieving compliance?
Monitoring patterns of employee behavior.
What does the visibility of employee behavior help with?
Compliance.
What should all stakeholders agree to in project proposals?
Data protection, security, ethics, and fraud protection methods.
What does the term ‘limited data sharing’ refer to?
A useful way to achieve results and boost trust between employers and regulators.
