Since
the rise of the digital era, it has become imperative to manage the risk of
fraud, corruption and bribery in the workplace.
Many companies are oblivious to the risk and as a result their capacity
to absorb the aftermath is substantially lower than ideal.
I recall Flexcoin, an online business serving bitcoin traders and investors, was hacked in March 2014 and was immediately forced to stop trading as a result (Bitcoin bank Flexcoin shuts after theft, 2014). Although this was not internal corruption, the case demonstrates the vulnerability of companies who are not equipped to manage the risk of fraud, corruption and bribery.
I recall Flexcoin, an online business serving bitcoin traders and investors, was hacked in March 2014 and was immediately forced to stop trading as a result (Bitcoin bank Flexcoin shuts after theft, 2014). Although this was not internal corruption, the case demonstrates the vulnerability of companies who are not equipped to manage the risk of fraud, corruption and bribery.
Specifically, in relation to internal risk of fraud, corruption and bribery, the COBIT 5 framework’s fifth principle explicitly addresses the importance of separating governance from management (Oliver & Lainhart, 2012, p. 9).
The principle forms a line between setting objectives and measuring outcomes. Should a company disregard the essential separation of governance and management, they are ultimately risking the continuity of the company by allowing the level of vulnerability to increase significantly.
Through the implementation of COBIT 5, I believe a company can manage the risks present in the digital era and, most importantly, build a strong governance/management distinction to manage the risk of fraud, corruption and bribery in the workplace.
Bitcoin bank Flexcoin shuts after
theft (2014, March 4). AFP.
Retrieved from https://au.finance.yahoo.com
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