Chapter 14/15 - Trends Flashcards
How can an organisation counter crime from a risk-management perspective?
- Third party firms to run extensive background checks on new applicants
- Clear organisational policies, checks and procedures, as well as continuous training
- Regular audits of areas
- Installation of password-protected firewalls and up to date antivirus software to prevent cyber crime
- AML specialists and training
What is political risk?
Political risk refers to the risk an organisation may face as a result of political changes or a political instability in a country. Country sanctions are an example of such risk.
What is the significance of corporate gifts?
To ensure that a corporate gift does not constitute a bribe, the Bribery Act 2010 guidance put significant restrictions on the value and the timing of corporate gifts and related hospitality actions.
What are the three primary and interrelated causes of new or changing risks?
- Complexity
- Interconnectedness
- Globalisation
Provide examples of current emerging risks
- the networked economy – everything being connected to the internet – hackers now looking at vulnerabilities in home devices such as TVs and fridges which may not be as protected as computers
- developments in AI – customer acceptance, pricing or staff recruitment decisions
- social media and digital natives – fake news, cancel culture, etc
- global pandemics – expect the unexpected
What is digital transformation?
Digital transformation is the modernisation of an organisation’s internal and external processes using the latest technology.
* Big data – due to internet and social media, the volume of data for analysis has grown exponentially
* Automated decision-making – decisions made by a computer rather than a human – e.g. speed cameras or computer might decide to switch on sprinkler in the event of fire or selling stocks at X price
* Algorithmic decision-making
* Artificial intelligence
