This white paper provides a multidimensional approach that inspires convergence of resources, thinking and collaboration by business and support operations professionals across the organization to implement and maintain a holistic and efficient risk management program. As a result, the program can be integrated into every day business decisions and the culture of a company maximizing value and business decision capability. Through this integration, an organization will ensure sustained and optimal enterprise stewardship and full alignment with its risk tolerance.
2015 LOMA Conference - Third party risk management - Session 20Marc S. Sokol
The document discusses implementing an effective third party risk management program. It notes diverse challenges companies face including low interest rates, economic issues, and growing cyber threats. It highlights common issues in third party risk management like lack of due diligence and oversight. The document outlines 12 categories of third party risk and presents a framework for assessing risk. It notes how many breaches originate with third parties and examples of companies impacted. The framework involves validating the risk appetite, evaluating inherent risks, controls, and determining the residual risk.
The document discusses enterprise risk management (ERM) and its rising importance for information security practices. ERM aims to align security solutions with business priorities by analyzing overall IT risks, prioritizing risk mitigation actions, and taking a managed approach to enterprise investments. Key drivers of ERM adoption include changing regulations, expanding business threats, and interest in simplifying security management.
White paper cyber risk appetite defining and understanding risk in the moder...balejandre
Managing risk is a balancing act for organizations of all sizes and disciplines. While some organizations take on too much risk, others arguably do not take on enough. Complicating this equation is the emergence of cyber as one of the most impactful sources of risk in the modern enterprise
The Countdown is on: Key Things to Know About the GDPRCase IQ
The EU’s General Data Protection Regulation (GDPR) comes into effect on May 25th. This powerful legislation strengthens data privacy laws in Europe and has implications for companies all over the world that store, process or transfer the information of the EU’s citizens.
Failure to comply with the regulation can expose a company to fines based on global revenue and reputation damage, yet many companies are struggling to comply in time.
Join information security expert and CEO/Founder of AsTech Consulting, Greg Reber, as he walks participants through a plan for GDPR compliance.
Ilta 2009 law firm risk management can it grow profitability - panel member...David Cunningham
The document discusses a panel presentation on law firm risk management. The panel addresses how effective risk management can both mitigate losses and contribute to a firm's competitive standing. They cover types of legal risks including IT, data, third parties, financial, practice management, strategic, operational and environmental. Benefits of risk management include cost savings, efficiencies, growth and client retention. The discussion notes trends of risk management becoming a formal department and integrating more closely with technology.
This document discusses operational risk and challenges in Latin America. It begins by defining operational risk and Enterprise Risk Management (ERM). It then discusses some of the main challenges, including cost pressures leading firms to cut control functions, fraud and insider risk especially from rogue traders, and growing cyber risks as the leading cause of incidents shifts from human error to phishing, hacking and malware. The document provides frameworks for improving cyber risk management and best practices such as creating frameworks involving senior management, identifying and prioritizing threats, protecting data, implementing incident response procedures, and periodically reviewing cybersecurity coverage.
The document provides a risk assessment of JPMorgan Chase following a 2014 data breach that compromised 83 million customer records. It identifies stakeholders, assets, and six main risks: 1) Inadequate controls allowing external access to data and systems, 2) Lack of customer data monitoring enabling long intrusions, 3) Slow technology adaptation leaving the bank vulnerable, and 4) Inefficient security communication. For each risk, drivers are analyzed and current/planned mitigations are described, such as access controls, third-party oversight, training, and a security-focused culture. The assessment follows the ISO 31000 risk management framework.
This document outlines the agenda and key topics for a panel discussion on law firm risk management. The panel will discuss how to define risk, common legal risk types like IT, financial, and practice management risks. They will also cover the business benefits of effective risk management, differences between the UK and US risk environments, evolving risk roles in law firms, and future directions for the field. The discussion aims to provide three next steps firms can take to improve their risk management and will conclude with a question and answer session.
2015 LOMA Conference - Third party risk management - Session 20Marc S. Sokol
The document discusses implementing an effective third party risk management program. It notes diverse challenges companies face including low interest rates, economic issues, and growing cyber threats. It highlights common issues in third party risk management like lack of due diligence and oversight. The document outlines 12 categories of third party risk and presents a framework for assessing risk. It notes how many breaches originate with third parties and examples of companies impacted. The framework involves validating the risk appetite, evaluating inherent risks, controls, and determining the residual risk.
The document discusses enterprise risk management (ERM) and its rising importance for information security practices. ERM aims to align security solutions with business priorities by analyzing overall IT risks, prioritizing risk mitigation actions, and taking a managed approach to enterprise investments. Key drivers of ERM adoption include changing regulations, expanding business threats, and interest in simplifying security management.
White paper cyber risk appetite defining and understanding risk in the moder...balejandre
Managing risk is a balancing act for organizations of all sizes and disciplines. While some organizations take on too much risk, others arguably do not take on enough. Complicating this equation is the emergence of cyber as one of the most impactful sources of risk in the modern enterprise
The Countdown is on: Key Things to Know About the GDPRCase IQ
The EU’s General Data Protection Regulation (GDPR) comes into effect on May 25th. This powerful legislation strengthens data privacy laws in Europe and has implications for companies all over the world that store, process or transfer the information of the EU’s citizens.
Failure to comply with the regulation can expose a company to fines based on global revenue and reputation damage, yet many companies are struggling to comply in time.
Join information security expert and CEO/Founder of AsTech Consulting, Greg Reber, as he walks participants through a plan for GDPR compliance.
Ilta 2009 law firm risk management can it grow profitability - panel member...David Cunningham
The document discusses a panel presentation on law firm risk management. The panel addresses how effective risk management can both mitigate losses and contribute to a firm's competitive standing. They cover types of legal risks including IT, data, third parties, financial, practice management, strategic, operational and environmental. Benefits of risk management include cost savings, efficiencies, growth and client retention. The discussion notes trends of risk management becoming a formal department and integrating more closely with technology.
This document discusses operational risk and challenges in Latin America. It begins by defining operational risk and Enterprise Risk Management (ERM). It then discusses some of the main challenges, including cost pressures leading firms to cut control functions, fraud and insider risk especially from rogue traders, and growing cyber risks as the leading cause of incidents shifts from human error to phishing, hacking and malware. The document provides frameworks for improving cyber risk management and best practices such as creating frameworks involving senior management, identifying and prioritizing threats, protecting data, implementing incident response procedures, and periodically reviewing cybersecurity coverage.
The document provides a risk assessment of JPMorgan Chase following a 2014 data breach that compromised 83 million customer records. It identifies stakeholders, assets, and six main risks: 1) Inadequate controls allowing external access to data and systems, 2) Lack of customer data monitoring enabling long intrusions, 3) Slow technology adaptation leaving the bank vulnerable, and 4) Inefficient security communication. For each risk, drivers are analyzed and current/planned mitigations are described, such as access controls, third-party oversight, training, and a security-focused culture. The assessment follows the ISO 31000 risk management framework.
This document outlines the agenda and key topics for a panel discussion on law firm risk management. The panel will discuss how to define risk, common legal risk types like IT, financial, and practice management risks. They will also cover the business benefits of effective risk management, differences between the UK and US risk environments, evolving risk roles in law firms, and future directions for the field. The discussion aims to provide three next steps firms can take to improve their risk management and will conclude with a question and answer session.
Stopping Breaches at the Perimeter: Strategies for Secure Access ControlSecureAuth
Billions are being spent on network and endpoint security each year and yet companies continue to get breached and become big news headlines. So the question remains: How can organizations protect their network and applications while detecting unwanted users and potential attackers? Join 451 Research and SecureAuth as we explore the current state of information security and discuss some of the emerging access control technologies that can help address these challenges.
In this informative webinar you will learn:
•Why the future of access control will require higher security while improving user experience
•How adaptive access control techniques can protect against an attack using multi-layered risk analysis
•How using Behavioral Biometrics can identify anomalous user behavior - continuously
This document summarizes an IBM presentation on managing reputational risk through effective IT risk management practices. It discusses how security breaches can damage a company's reputation and shares findings from an IBM study that identified data breaches as the top IT risk threatening reputation. The presentation recommends that companies integrate IT and reputational risk management, adopt strong security practices, and be proactive in addressing threats to protect their reputation and value.
This document discusses the importance of establishing a cyber risk framework that is integrated into an organization's enterprise-wide risk management process. It provides questions that organizations should consider to help identify and assess cyber risks. It also describes three hypothetical cyber risk scenarios involving ransomware infection, and discusses potential impacts, losses, and mitigation strategies for each scenario.
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016CBIZ, Inc.
In this issue: 1) Invest in Specialty Skills and Other Tips for Internal Audit Planning
2) Cyber Risk - Now It IS the Daily News 3) How to Build an Actionable Incident Response Strategy.
The document discusses the importance of conducting risk assessments and implementing countermeasures to protect critical data and assets from threats. It outlines the key steps in risk assessment including identifying assets, threats, vulnerabilities, and risks. Outsourcing critical data to a managed service provider that locates data in secure environments is presented as an effective countermeasure that can minimize risks by placing security in the hands of security professionals and ensuring constant monitoring and uninterrupted access. The document advocates for regular risk assessments and risk management to account for changing threats over time.
1) Enterprise risk management (ERM) and governance-risk-compliance (GRC) are approaches that have emerged in the past decade but there is no consensus on how they relate.
2) Currently, GRC is seen as a top-down process that sets risk requirements, while ERM identifies and reports on risks, but the document argues this view is flawed.
3) The document contends that ERM should drive risk assessment and response, informing governance and compliance, rather than the other way around. With ERM in charge of holistic risk management, conflicts can be reduced and risks better addressed.
DIFFERENCES BETWEEN ERM PRACTICES BETWEEN THE FINANCIAL AND CORPORATE SECTORS
DIFFÉRENCES DES PRATIQUES ERM ENTRE LES SECTEURS FINANCIERS ET CORPORATIFS
Robin Singh points out that the role of general counsel has become increasingly complex due to challenges like cyber security. He analyzes issues general counsel may face, such as an expanding regulatory environment and compliance responsibilities. Additionally, general counsel must cope with concerns over data privacy and security in a rapidly changing global environment. Singh helps current and future general counsel understand the complex tasks they may need to tackle.
Yvonne I Pytlik Journal Of Securities Law, Regulation & Compliance April ...ypytlik
1) The document discusses compliance risk as a critical business risk for asset managers. Compliance violations can seriously damage firms through reputational harm, legal penalties, and even cause the demise of firms like Galleon Management.
2) Regulators are pushing asset managers to strengthen enterprise risk management with compliance as a key component. Firms must take a comprehensive approach to identifying all risks, including emerging compliance risks.
3) Leading practices cited include integrating compliance fully into enterprise risk management for a single view of all risks, strong governance, and effective mitigation strategies to prevent serious compliance breaches like insider trading.
Risk & Advisory Services: Quarterly Risk Advisor May 2016CBIZ, Inc.
This issue includes the following articles: 1) 3 Questions Every Board Needs to Ask About Enterprise Risks 2) 3 Ways to Improve Your Credit Card and Data Security 3) 5 Major Risks Construction Project Owners Face
Understanding the black hat hacker eco systemDavid Sweigert
This document discusses how misaligned incentives work against cybersecurity. It finds that there are three levels of misaligned incentives:
1) Between attackers and defenders, where attackers are incentivized by a fluid criminal market while defenders are constrained by bureaucracy.
2) Within organizations, where cybersecurity strategies are not fully implemented, and where executives and operators measure success differently.
3) Individual incentives for "black hats" are clear in the criminal cyber market, which drives innovation, while defenders work within organizations with different goals and metrics for success.
The document reports on a survey that found cybersecurity is now a top priority for organizations due to losses from breaches. However, executives still see cybersecurity as
This document summarizes the services provided by Thomas Econometrics, an expert consulting firm that specializes in economic and statistical analysis for employment litigation, regulatory investigations, and risk management strategies. They have expertise in areas such as employment discrimination, compensation studies, wage and hour law, and reduction in force planning. Their team of experts can collect and analyze data, perform statistical analyses, calculate damages, and provide expert testimony. They work with large companies, government agencies, and legal groups to analyze issues such as pay equity, hiring/promotion bias, and compliance with anti-discrimination statutes.
Fraud, bribery and corruption: Protecting reputation and valueDavid Graham
In support of International Fraud Awareness Week, Deloitte Risk Advisory has published a series of articles, the second of which has been introduced below. This article lists ten areas that executives and the audit committee should evaluate to help mitigate reputational risks of fraud, bribery and corruption
The document discusses the challenges of hiring the right Chief Information Security Officer (CISO) for financial services firms. It notes that the CISO role is still evolving and there is no consensus on the required qualifications. It recommends that firms clarify the CISO role and their security needs by making cybersecurity a board-level priority, assessing their current security posture and vulnerabilities, and evaluating their security culture. Taking these steps will help firms define the right profile for their next CISO candidate.
The survey found that while legal risk is generally seen as owned by the General Counsel, it is not well integrated into organizational risk management. Only 30% of respondents said legal risk was well integrated into operational risk frameworks. This is problematic because legal risk overlaps with other risk areas and managing it effectively requires integration. There was also broad agreement on priorities like compliance but uncertainty around emerging risks. Regulators could provide more guidance to help General Counsel demonstrate control over an broad area like legal risk.
A brief and clear argumentation in favour of the personalisation approach in risk management procedures in large companies.
Taken from "Making better risk management decisions" by J. Birkinshaw and H. Jenkins.
The document summarizes a session from the Society of Actuaries Spring Meeting on building and maintaining effective risk dashboards. The session discussed what risk dashboards are, their purpose in providing consolidated risk reporting across an enterprise. Keys to success include integrating different risk types into a single dashboard and ensuring executive sponsorship. The session also provided a case study on how risk dashboards could have helped identify risks in the subprime mortgage crisis. Implementation challenges included issues with data availability, integration into decision making processes, and legal implications of disclosing risk information.
Third Party Risk Management IntroductionNaveen Grover
On October 30, 2013 the Office of the Comptroller of the Currency (OCC) issued updated guidance on third-party risks and vendor management. The OCC's bulletin points out that its updated guidance replaces OCC Bulletin 2001-47, "Third-Party Relationships: Risk Management Principles," and OCC Advisory Letter 2000-9, "Third-Party Risk."
BUSINESS RISK IN MEDIUM & LARGE SCALE CORPORATE ENTITIESMark Evans
Business risk comes in two forms: operational risk relating to day-to-day operations and strategic risk relating to external factors and business strategy. Operational risk is often addressed reactively through controls and assessments while strategic risk requires a holistic view of external threats and opportunities. To manage both types of risk effectively requires aligning risk management with business objectives, understanding how uncertainty affects goals, and taking an integrated approach across the organization rather than operating in silos. Innovation and risk are intertwined, so successful businesses develop frameworks to both mitigate threats and exploit opportunities arising from risk.
Risk Monitoring and Management Trends In CommoditiesCTRM Center
The document summarizes the results of a survey conducted by Commodity Technology Advisory LLC on risk management trends in the commodities industry. The survey found that market risk, credit risk, and regulatory risk were seen as the most important risks facing companies. While some risks are managed at the department level, there is an increasing focus on managing risks at the enterprise level. However, the survey found that companies use a mix of systems and tools to manage risks, including spreadsheets, and that risk management capabilities in existing commodity trading and risk management (CTRM) systems are not being fully utilized.
Stopping Breaches at the Perimeter: Strategies for Secure Access ControlSecureAuth
Billions are being spent on network and endpoint security each year and yet companies continue to get breached and become big news headlines. So the question remains: How can organizations protect their network and applications while detecting unwanted users and potential attackers? Join 451 Research and SecureAuth as we explore the current state of information security and discuss some of the emerging access control technologies that can help address these challenges.
In this informative webinar you will learn:
•Why the future of access control will require higher security while improving user experience
•How adaptive access control techniques can protect against an attack using multi-layered risk analysis
•How using Behavioral Biometrics can identify anomalous user behavior - continuously
This document summarizes an IBM presentation on managing reputational risk through effective IT risk management practices. It discusses how security breaches can damage a company's reputation and shares findings from an IBM study that identified data breaches as the top IT risk threatening reputation. The presentation recommends that companies integrate IT and reputational risk management, adopt strong security practices, and be proactive in addressing threats to protect their reputation and value.
This document discusses the importance of establishing a cyber risk framework that is integrated into an organization's enterprise-wide risk management process. It provides questions that organizations should consider to help identify and assess cyber risks. It also describes three hypothetical cyber risk scenarios involving ransomware infection, and discusses potential impacts, losses, and mitigation strategies for each scenario.
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016CBIZ, Inc.
In this issue: 1) Invest in Specialty Skills and Other Tips for Internal Audit Planning
2) Cyber Risk - Now It IS the Daily News 3) How to Build an Actionable Incident Response Strategy.
The document discusses the importance of conducting risk assessments and implementing countermeasures to protect critical data and assets from threats. It outlines the key steps in risk assessment including identifying assets, threats, vulnerabilities, and risks. Outsourcing critical data to a managed service provider that locates data in secure environments is presented as an effective countermeasure that can minimize risks by placing security in the hands of security professionals and ensuring constant monitoring and uninterrupted access. The document advocates for regular risk assessments and risk management to account for changing threats over time.
1) Enterprise risk management (ERM) and governance-risk-compliance (GRC) are approaches that have emerged in the past decade but there is no consensus on how they relate.
2) Currently, GRC is seen as a top-down process that sets risk requirements, while ERM identifies and reports on risks, but the document argues this view is flawed.
3) The document contends that ERM should drive risk assessment and response, informing governance and compliance, rather than the other way around. With ERM in charge of holistic risk management, conflicts can be reduced and risks better addressed.
DIFFERENCES BETWEEN ERM PRACTICES BETWEEN THE FINANCIAL AND CORPORATE SECTORS
DIFFÉRENCES DES PRATIQUES ERM ENTRE LES SECTEURS FINANCIERS ET CORPORATIFS
Robin Singh points out that the role of general counsel has become increasingly complex due to challenges like cyber security. He analyzes issues general counsel may face, such as an expanding regulatory environment and compliance responsibilities. Additionally, general counsel must cope with concerns over data privacy and security in a rapidly changing global environment. Singh helps current and future general counsel understand the complex tasks they may need to tackle.
Yvonne I Pytlik Journal Of Securities Law, Regulation & Compliance April ...ypytlik
1) The document discusses compliance risk as a critical business risk for asset managers. Compliance violations can seriously damage firms through reputational harm, legal penalties, and even cause the demise of firms like Galleon Management.
2) Regulators are pushing asset managers to strengthen enterprise risk management with compliance as a key component. Firms must take a comprehensive approach to identifying all risks, including emerging compliance risks.
3) Leading practices cited include integrating compliance fully into enterprise risk management for a single view of all risks, strong governance, and effective mitigation strategies to prevent serious compliance breaches like insider trading.
Risk & Advisory Services: Quarterly Risk Advisor May 2016CBIZ, Inc.
This issue includes the following articles: 1) 3 Questions Every Board Needs to Ask About Enterprise Risks 2) 3 Ways to Improve Your Credit Card and Data Security 3) 5 Major Risks Construction Project Owners Face
Understanding the black hat hacker eco systemDavid Sweigert
This document discusses how misaligned incentives work against cybersecurity. It finds that there are three levels of misaligned incentives:
1) Between attackers and defenders, where attackers are incentivized by a fluid criminal market while defenders are constrained by bureaucracy.
2) Within organizations, where cybersecurity strategies are not fully implemented, and where executives and operators measure success differently.
3) Individual incentives for "black hats" are clear in the criminal cyber market, which drives innovation, while defenders work within organizations with different goals and metrics for success.
The document reports on a survey that found cybersecurity is now a top priority for organizations due to losses from breaches. However, executives still see cybersecurity as
This document summarizes the services provided by Thomas Econometrics, an expert consulting firm that specializes in economic and statistical analysis for employment litigation, regulatory investigations, and risk management strategies. They have expertise in areas such as employment discrimination, compensation studies, wage and hour law, and reduction in force planning. Their team of experts can collect and analyze data, perform statistical analyses, calculate damages, and provide expert testimony. They work with large companies, government agencies, and legal groups to analyze issues such as pay equity, hiring/promotion bias, and compliance with anti-discrimination statutes.
Fraud, bribery and corruption: Protecting reputation and valueDavid Graham
In support of International Fraud Awareness Week, Deloitte Risk Advisory has published a series of articles, the second of which has been introduced below. This article lists ten areas that executives and the audit committee should evaluate to help mitigate reputational risks of fraud, bribery and corruption
The document discusses the challenges of hiring the right Chief Information Security Officer (CISO) for financial services firms. It notes that the CISO role is still evolving and there is no consensus on the required qualifications. It recommends that firms clarify the CISO role and their security needs by making cybersecurity a board-level priority, assessing their current security posture and vulnerabilities, and evaluating their security culture. Taking these steps will help firms define the right profile for their next CISO candidate.
The survey found that while legal risk is generally seen as owned by the General Counsel, it is not well integrated into organizational risk management. Only 30% of respondents said legal risk was well integrated into operational risk frameworks. This is problematic because legal risk overlaps with other risk areas and managing it effectively requires integration. There was also broad agreement on priorities like compliance but uncertainty around emerging risks. Regulators could provide more guidance to help General Counsel demonstrate control over an broad area like legal risk.
A brief and clear argumentation in favour of the personalisation approach in risk management procedures in large companies.
Taken from "Making better risk management decisions" by J. Birkinshaw and H. Jenkins.
The document summarizes a session from the Society of Actuaries Spring Meeting on building and maintaining effective risk dashboards. The session discussed what risk dashboards are, their purpose in providing consolidated risk reporting across an enterprise. Keys to success include integrating different risk types into a single dashboard and ensuring executive sponsorship. The session also provided a case study on how risk dashboards could have helped identify risks in the subprime mortgage crisis. Implementation challenges included issues with data availability, integration into decision making processes, and legal implications of disclosing risk information.
Third Party Risk Management IntroductionNaveen Grover
On October 30, 2013 the Office of the Comptroller of the Currency (OCC) issued updated guidance on third-party risks and vendor management. The OCC's bulletin points out that its updated guidance replaces OCC Bulletin 2001-47, "Third-Party Relationships: Risk Management Principles," and OCC Advisory Letter 2000-9, "Third-Party Risk."
BUSINESS RISK IN MEDIUM & LARGE SCALE CORPORATE ENTITIESMark Evans
Business risk comes in two forms: operational risk relating to day-to-day operations and strategic risk relating to external factors and business strategy. Operational risk is often addressed reactively through controls and assessments while strategic risk requires a holistic view of external threats and opportunities. To manage both types of risk effectively requires aligning risk management with business objectives, understanding how uncertainty affects goals, and taking an integrated approach across the organization rather than operating in silos. Innovation and risk are intertwined, so successful businesses develop frameworks to both mitigate threats and exploit opportunities arising from risk.
Risk Monitoring and Management Trends In CommoditiesCTRM Center
The document summarizes the results of a survey conducted by Commodity Technology Advisory LLC on risk management trends in the commodities industry. The survey found that market risk, credit risk, and regulatory risk were seen as the most important risks facing companies. While some risks are managed at the department level, there is an increasing focus on managing risks at the enterprise level. However, the survey found that companies use a mix of systems and tools to manage risks, including spreadsheets, and that risk management capabilities in existing commodity trading and risk management (CTRM) systems are not being fully utilized.
Multinational companies face an array of evolving risks that are becoming more diverse, complex, and challenging to address. Traditional risk management focused on insurance placement and claims management, while strategic risk management sees risk management supporting corporate goals and opportunities. To develop strategic risk management, companies must foster collaboration, clearly define risk understanding and tolerance, and manage emerging challenges like reputational, political, and compliance risks. They must also hire skilled risk managers who can work across functions and adapt local strategies to diverse markets and regulations. As systems globally interconnect, risk cannot be confined to one area and must be addressed holistically.
2015 Tackling This Year's Audit Hot SpotsRon Steinkamp
1. The document discusses 10 key risk areas that organizations should focus internal audit resources on, including information security and data privacy, compliance programs, and business strategy initiatives. Cybersecurity issues and data privacy regulations are top concerns as cyberattacks have increased.
2. Compliance requirements continue to grow in complexity across many industries, resulting in regulatory compliance being a top risk. It is important for internal audit to ensure compliance controls are properly designed and operating effectively.
3. New business initiatives often aim to help organizations grow but many fail due to insufficient resources, unclear direction, and underestimating cultural impacts. Internal audit should understand initiatives and risks to monitor key risks and identify audit needs.
1) The document discusses 14 impact factors that can affect organizations after a cyberattack, including both direct costs like notification and credit monitoring, as well as less visible costs like intellectual property theft and disruption of operations.
2) It provides two hypothetical scenarios - one involving a health insurer and one a technology company - to illustrate how these impact factors can play out over time in the three phases of an incident response: triage, impact management, and business recovery.
3) For each scenario, it estimates the financial impact and duration of each impact factor over a 5-year period following the cyberattack. The scenarios are intended to demonstrate the variety of impacts, both visible and less visible, that organizations should consider when planning
1) Risk management involves identifying, assessing, and prioritizing risks in order to minimize negative impacts and maximize opportunities. It also includes transferring, avoiding, reducing, or accepting risks.
2) While risk management standards aim to increase confidence, they are sometimes criticized for not measurably improving risk. Risk management must balance high-probability/low-impact risks with low-probability/high-impact risks.
3) Intangible risks like those from deficient knowledge, relationships, or processes directly reduce productivity and must be identified and reduced.
The incorporation of sustainability risks into the risk culture | Albert Vila...Albert Vilariño
Post published on Medium on 3/3/17.
https://medium.com/@albert.vilarino/the-incorporation-of-sustainability-risks-into-the-risk-culture-b18aa1e39add#.cd2l4nh2x
Enterprise Risk Management: Minimizing Exposure, Fostering Innovation and Acc...Cognizant
This document discusses the importance and benefits of enterprise risk management (ERM) programs. It argues that ERM, when properly implemented, can help organizations minimize risks, accelerate growth, and foster innovation. The document outlines how ERM provides a framework to understand a company's risk exposure and allocate resources effectively to address risks. It also counters the perception that ERM hinders innovation, arguing instead that ERM can help transform ideas into successful products with less risk over the short and long term.
PECB Webinar: Aligning ISO 31000 and Management of Risk MethodologyPECB
The webinar covers:
• ISO 31000 as the adopted standard, for ISO standards that have risk components, such as ISO 27005 and OHSAS 18001
• Description of Management of Risk (MoR) – how organizations can benefit
• Complementary values that ISO 31000 and MoR bring to each other
• How Risk Managers can evolve a practical approach to carrying out Risk Processes
Presenter:
This webinar was presented by PECB Trainer Orlando Olumide Odejide, an experienced Enterprise Architect and Chief Trainer for Training Heights Limited.
This document discusses the concept of risk culture and how it has become an important factor in organizational failures and crises. It provides definitions of risk culture and examines how risk culture relates to and overlaps with organizational culture. It also discusses how risk culture can be measured and managed, using both qualitative and quantitative methods. Financial services is given as an example industry where weaknesses in risk culture have been identified as contributing to problems. The document advocates for organizations to carefully consider how rewards and incentives may influence or shape risk culture.
This document summarizes key points about using information technology to enhance risk management programs. It discusses how evolving technologies like big data analytics, cloud computing, and business intelligence tools can help risk managers more effectively capture, analyze, and respond to risk data. These technologies allow organizations to better monitor risks across business units and use predictive insights to make informed decisions. The document also outlines components of an effective risk management program and how basic tools like spreadsheets or more sophisticated risk management software can help organizations inventory, evaluate, and prioritize risks.
Managing-Data-Protection-and-Cybersecurity-Audit-s-Role_joa_Eng_0116Mohammed J. Khan
This document discusses the importance of data protection and cybersecurity, especially in the medical device industry. It outlines the audit's role in assessing these risks. The summary includes:
1) Data protection and cybersecurity are increasingly important due to growing cyber threats and reliance on technology in industries like healthcare.
2) An effective audit should include performing a risk assessment to identify gaps, collaborating across departments, and conducting reviews of key risk areas like IT systems, third parties, and incident response.
3) The scope of a data protection and cybersecurity audit should include evaluating controls over sensitive data, employee access and training, collaboration tools, third party management, device security, and records handling.
Importance Of The Dignity Of Compliance Risk In Organizations.pdfaNumak & Company
Many companies will lose their focus if management does not indulge in risk compliance because the primary goal of risk compliance is to ensure that no company or organization goes beyond its code of conduct. Thus, businesses must refrain from outbound resources for the existing ones to grow. Nonetheless, companies now initially add the risk management function to their team for cross sections and internal and external compliance, which seems to be the best means to aggregate and wave failure.
The document discusses the state of risk sensing capabilities in large organizations based on a survey conducted with 155 executives. Key findings include:
- Most companies report having risk sensing capabilities, but they are more focused on financial, compliance, and operational risks rather than strategic risks.
- About two-thirds of executives agree their organizations have the right people to analyze risk sensing data, but one-third are less certain.
- The risks executives view as most important are shifting, and external perspectives on risks may warrant further consideration.
The document provides an overview of effective risk sensing practices and characteristics for organizations to develop robust risk sensing programs that identify emerging risks.
Enterprise risk management has become a vital component to cyber security, logistics management, asset management and supply chain management. As organizations continue to rely on data to drive workforce automation, Industrial IoT and process automation, it is becoming necessary to analyze data to discover risk before it occurs and implement effective remediation practices and processes. Seminar participants will collaborate and explore the emerging new use cases for enterprise risk management that addresses the need to better understand how to leverage critical data to predict and understand how data analytics can support risk management and mitigation in an increasingly data-dependent workforce environment.
During this seminar, participants will:
a. Explore new innovations in enterprise risk management that will provide new career opportunities for STEM professionals
b. Examine the skills and experiences necessary to take advantage of risk management career opportunities
c. Discern the applicable areas for enterprise risk management
d. Determine the importance of addressing enterprise risk management in all digital transformation initiatives
e. Identify the market growth and consulting opportunities in enterprise risk management
Operational risk faces microfinance institutions from failures in internal systems, processes, technology, and human factors or external events. It includes risks from inadequate internal processes, employees, systems, or external events. For MFIs, operational risks arise from human errors or fraud, weak internal processes, system and technology failures, and relationship issues with clients that could lead to client loss. Managing these risks requires strong internal controls, training, monitoring, backup systems, and good client relations.
130C h a p t e r10 Managing IT-Based Risk11 This c.docxLyndonPelletier761
130
C h a p t e r
10 Managing IT-Based Risk1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen. “A Holistic
Approach to Managing IT-Based Risk.” Communications of the Association for Information Systems 25, no. 41
(December 2009): 519–30. Reproduced by permission of the Association for Information Systems.
Not so long ago, IT-based risk was a fairly low-key activity focused on whether IT could deliver projects successfully and keep its applications up and run-ning (McKeen and Smith 2003). But with the opening up of the organization’s
boundaries to external partners and service providers, external electronic communica-
tions, and online services, managing IT-based risk has morphed into a “bet the com-
pany” proposition. Not only is the scope of the job bigger, but also the stakes are much
higher. As companies have become more dependent on IT for everything they do, the
costs of service disruption have escalated exponentially. Now, when a system goes
down, the company effectively stops working and customers cannot be served. And
criminals routinely seek ways to wreak havoc with company data, applications, and
Web sites. New regulations to protect privacy and increase accountability have also
made executives much more sensitive to the consequences of inadequate IT security
practices—either internally or from service providers. In addition, the risk of losing or
compromising company information has risen steeply. No longer are a company’s files
locked down and accessible only by company staff. Today, company information can be
exposed to the public in literally hundreds of ways. Our increasing mobility, the porta-
bility of storage devices, and the growing sophistication of cyber threats are just a few
of the more noteworthy means.
Therefore, the job of managing IT-based risk has become much broader and more
complex, and it is now widely recognized as an integral part of any technology-based
work—no matter how minor. As a result, many IT organizations have been given the
responsibility of not only managing risk in their own activities (i.e., project develop-
ment, operations, and delivering business strategy) but also of managing IT-based risk
in all company activities (e.g., mobile computing, file sharing, and online access to infor-
mation and software). Whereas in the past companies have sought to achieve security
Chapter 10 • Managing IT-Based Risk 131
through physical or technological means (e.g., locked rooms, virus scanners), under-
standing is now growing that managing IT-based risk must be a strategic and holistic
activity that is not just the responsibility of a small group of IT specialists but also part
of the mind-set that extends from partners and suppliers to employees and customers.
This chapter explores how organizations are addressing and coping with increas-
ing IT-based risk. It first looks at the challenges facing IT managers in the arena of.
130C h a p t e r10 Managing IT-Based Risk11 This c.docxherminaprocter
130
C h a p t e r
10 Managing IT-Based Risk1
1 This chapter is based on the authors’ previously published article, Smith, H. A., and J. D. McKeen. “A Holistic
Approach to Managing IT-Based Risk.” Communications of the Association for Information Systems 25, no. 41
(December 2009): 519–30. Reproduced by permission of the Association for Information Systems.
Not so long ago, IT-based risk was a fairly low-key activity focused on whether IT could deliver projects successfully and keep its applications up and run-ning (McKeen and Smith 2003). But with the opening up of the organization’s
boundaries to external partners and service providers, external electronic communica-
tions, and online services, managing IT-based risk has morphed into a “bet the com-
pany” proposition. Not only is the scope of the job bigger, but also the stakes are much
higher. As companies have become more dependent on IT for everything they do, the
costs of service disruption have escalated exponentially. Now, when a system goes
down, the company effectively stops working and customers cannot be served. And
criminals routinely seek ways to wreak havoc with company data, applications, and
Web sites. New regulations to protect privacy and increase accountability have also
made executives much more sensitive to the consequences of inadequate IT security
practices—either internally or from service providers. In addition, the risk of losing or
compromising company information has risen steeply. No longer are a company’s files
locked down and accessible only by company staff. Today, company information can be
exposed to the public in literally hundreds of ways. Our increasing mobility, the porta-
bility of storage devices, and the growing sophistication of cyber threats are just a few
of the more noteworthy means.
Therefore, the job of managing IT-based risk has become much broader and more
complex, and it is now widely recognized as an integral part of any technology-based
work—no matter how minor. As a result, many IT organizations have been given the
responsibility of not only managing risk in their own activities (i.e., project develop-
ment, operations, and delivering business strategy) but also of managing IT-based risk
in all company activities (e.g., mobile computing, file sharing, and online access to infor-
mation and software). Whereas in the past companies have sought to achieve security
Chapter 10 • Managing IT-Based Risk 131
through physical or technological means (e.g., locked rooms, virus scanners), under-
standing is now growing that managing IT-based risk must be a strategic and holistic
activity that is not just the responsibility of a small group of IT specialists but also part
of the mind-set that extends from partners and suppliers to employees and customers.
This chapter explores how organizations are addressing and coping with increas-
ing IT-based risk. It first looks at the challenges facing IT managers in the arena of.
1) The CIO and CCO should be strategic allies in combating cyber risk, as it is both a technology problem and a human behavior problem. Together they can establish policies, provide training, monitor compliance, and discipline employees to address the behavioral aspects of cyber risk.
2) The CIO and CCO can partner to ensure new technology initiatives like cloud-based solutions meet regulatory requirements regarding data protection, privacy, and other issues.
3) The CIO and CCO can provide a complete picture of the organization's cyber risks by assessing what data they have, where it is stored, and existing technical vulnerabilities, and then work with the business to develop legally compliant and feasible controls.
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Convergence-based Approach for Managing Operational Risk and Security In Today’s Challenging Environment”
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A CONVERGENCE-BASED APPROACH FOR MANAGING
OPERATIONAL RISK AND SECURITY IN TODAY’S CHALLENGING
ENVIRONMENT
By Marc S Sokol, CISM, CHS-III
(With special thanks to Vicki Yamasaki, Richard Moore, Debra Zoppy, Cliff Lange, and Jack Campbell for their contributions, review, and support)
February 18, 2015
“We call it business. We pretend the plan and the forecast are the real tools of business, but of
course they’re minor accessories. Conversation and trust are the real tools of business.”
- Liz Ryan, Forbes magazine
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Companies today are faced with a very challenging operating environment including a diverse
set of environmental variables and threat landscape including:
• Low interest rate yields,
• Turmoil in Europe,
• Stagnant U.S. economy,
• Growing tax burden,
• Volatility in certain investment markets,
• Growing threat of terrorism by ideological extremists,
• Stronger regulatory intervention combined with more prescriptive regulations,
• Increased scrutiny by rating agencies,
• The velocity, breadth, and capability, of cyber-attacks in which a single micro-agent from
anywhere in the world can inflict financial, legal, regulatory, trust, and brand damage,
• Third party upstream and downstream risk/liability rising with the broader reliance on
third party support so companies can focus more on core competencies,
• Human capital risks (succession, engagement, retention, performance, development,
compliance),
• Natural disasters that concurrently affect multiple geographical regions, managing brand
and reputation in a social media “viral” world,
• Sustained pressure remains to contain expenses on non-revenue generating areas of a
company, and
• Maintaining and satisfying the demands of more empowered, better-informed, and less
loyal customers.
However, while the environment in which companies operate today has changed and the risks
are significantly more dynamic, companies continue to resist this change and manage their
operational risks and security programs in a legacy and antiquated manner that is not well
positioned to adapt and respond to a very changing landscape of threats. Specifically, a
typical organization may have dozens of risk managers spread across Legal, Human
Resources, Lines of Business, Finance, Corporate Security, IT Security, Business Continuity,
Compliance, Information Technology, and Facilities/Real Estate. Each of these domains has
its own individual silos and risk landscape and the various risk professionals inside each silo
have there own focus on the risk triggers that are in their respective domains, not all the others
inside the same company. It is the latter that is a key requirement for adapting to and
managing the myriad of operational risks faced by companies today. For example, do the HR
recruiter and the Chief Security Officer think the same about what are red flags in the
background check of a new potential candidate or established guidelines for safe
terminations? Does the IT administrator think about the same red flags that the CFO thinks
about in terms of data integrity and financial reporting accuracy (e.g., its important to ensure
that formulas in a spreadsheet or program are not changed without authorization, but are the
formulas in that spreadsheet correct and is their integrity in the results?) Does the business
owner see the same concerns that security, compliance and law see in a third party services
relationship or an online business application? Do IT and Facilities understand the impact that
systems and workspace availability have on certain key business operations? Can a company
effectively ensure that it doesn’t have hidden concentration risks in the aggregate across the
enterprise that if realized, could substantially damage or impair the company? Is the
company’s risk appetite set by executive management being monitored and aligned with risk
taking collectively across the spectrum of operational risk consequences (as opposed to on a
project by project basis) by a business or support center?
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Thus, the convergence of thinking by risk professionals in an organization is paramount to
effective enterprise stewardship amidst these demands and challenges of today's corporate
environment. However, what have perplexed many companies are exactly how to converge
these resources to pursue a common mission while maintaining their specific roles and
responsibilities. In addition, what is also challenging is the ambiguity in the definition of
operational risk, the span in which affects every business and support center, and exactly how
it can be assessed and managed effectively. For example, a commonly used definition of
Operational Risk can be found in BASEL II (http://www.bis.org/list/bcbs/tid_28/index.htm) that
states that Operational Risk is "the risk of loss arising from inadequate or failed internal
processes, people or systems, or from external events.” Additionally, this framework and
approach focuses solely on the risk to a company’s capital based on prior loss events.
However, operational risk is a broad discipline and, contrary to other risks (e.g., credit and
market risk), are not willingly incurred and are not revenue driven. They cannot be diversified,
hedged, and as long as people, process, technology, and the environment in which we operate
remain imperfect, they cannot be fully eliminated. Further, there are substantial differences in
the way operational risks can be assessed and managed as compared to the other risk
categories. Specifically, in the areas of credit, market, or investment risk, the function of
performing this analysis has the following characteristics:
• Risk domains such as Credit, Market, and Investment risk management are generally
performed in an isolated area of expertise within the company (generally the finance or
investments area of a company)
• The necessary historical and research data that illustrates the factors and drivers that
affect the economic markets is readily available both at the market level (e.g., interest
rates, unemployment, changes in regulation, consumer confidence, GDP, etc.) and at
the company level (i.e., financial statements, reporting disclosures, etc.)
• Extensive frameworks, models, and analytical tools are readily available
• Revenue driven and willingly incurred (risk/reward)
However, Operational Risk has the following characteristics:
• Requires extensive and ongoing cooperation and partnerships across the company
from all business and support operations areas, and thus a substantial challenge in
many siloed organizations
• Operational risk management and governance likely will identify opportunities for
process and control improvements and/or the potential for operational failures. This
scope can lead to a perceived contention between risk leaders and the business/
operations leaders
• The factors and drivers that supply important information regarding operational risk are
not readily available. Specifically, companies generally will avoid publicly disclosing
operational failures unless required by law, and even in those cases will generally avoid
any detailed information regarding an incident as it may be perceived as possibly
ineffective operational or senior management, and thus could increase legal liability and
reputational harm. Moreover, prior loss events generally are not a valid reference for
predicting future loss events in Operational Risk because the dynamic environment in
which we operate continues to change and the actors involved do not follow industry
standard practices (e.g., investment folks, tec.) like investment managers, but rather are
criminals, activities, nation state supported, ideological extremists, activists.
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Operational risk management is, nonetheless, critical in minimizing unforeseen events and
keeping potential losses within defined levels of risk appetite (i.e. the amount of risk one is
prepared to accept in pursuit of business objectives), and determined by balancing the costs of
sustaining a certain level of residual risk against the expected business benefits.
Fortunately, many companies today are recognizing the importance of their corporate
stewardship in actively managing the operational risks they face today and in the future. They
are seeking innovative, yet pragmatic business aligned solutions to address this important
opportunity; especially given the impact of realizing the consequences continues to escalate
over time. As a result, an effective operational risk framework and associated program must
go well beyond the ambiguous BASEL type definition of operational risk, that states “Risks of
direct or indirect loss and/or not achieving business objectives due to failed process, people,
information systems, and/or from the external environment”. Rather, Operational Risk should
be defined as “The risk of consequences to the organization for failing to maintain adequate
people, process, technology, and environmental controls/safeguards resulting in increased
Fraud (internal and external), loss of business performance and/or increased business
interruption, regulatory intervention and penalties, legal liability, financial losses/restitution,
reputational harm and/or brand erosion (loss of consumer trust), increased errors/omissions in
data processing and financial reporting, data loss and/or unauthorized access, use, and/or
disclosure of Privacy data, security breaches (logical or physical), loss or damages to assets,
and reduction in workplace safety.” As a result, the risk analysis can be aligned with key
business goals via the direct business consequences in terms of the total inherent risk (aka
distressed value), the effectiveness of existing safeguards and controls intended to reduce the
inherent risk, and the resulting residual risk level. The residual risk level can then be
compared with the established risk appetite and whether those consequences, if realized,
aligns with business objectives including whether they are adequately balanced with the
expected benefits of pursuing or maintaining the business opportunity or function respectively.
The legacy approach commonly sought as a result of the BASEL guidelines, while they may be
effective solely from a financial perspective in establishing some level of capital reserve
allocations, from a business operations perspective they appear to a business leader as a
myriad of statistical modeling data that includes abstract valuations of probability and likelihood
solely based on a sterile view of prior loss event data. They afford neither any real evaluation
of operations, nor will not adequately deliver the intelligence data at the right level to
proactively enable the business leader to make thoughtful, measured decisions regarding the
present and future risk they are facing as many aspects of operational risk are not limited to
economics and capital reserves (e.g., reputational harm, lost trust and consumer confidence,
regulatory intervention, etc.).
Therefore, there are two key criteria for ensuring a successful operational risk management
program that truly can be integrated into the culture of a company and fully integrated into day
to day business operations and decisions. First, it is essential to establish and ensure the full
support of the CEO and executive leadership team of a company in making operational risk
(including third party risk) a priority in the organization and business leaders will be held
accountable and responsible for understanding their operational risks and ensuring their
alignment with the company’s established risk appetite.
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Second, the company should establish a set of key consequences is relevant to the business
model and priorities of the organization. The following is an example of a set of operational
risk consequences derived from a number of various industry studies and frameworks on
operational risk:
1. Fraud - risk from deception that occurs with intent to result in financial or personal gain
2. Business performance, alignment, and interruption risk may arise when product,
service, fail to meet performance required and/or become jeopardized by natural or man-
made events
3. Regulatory intervention and penalties may arise when the services, products, or activities
fail to comply with applicable laws and industry regulations
4. Legal liability may arise when a service provider exposes the customer/institution to legal
expenses and possible lawsuits and/or judgments due to intentional or unintentional product
or process failures
5. Financial loss/restitution risk of fines, penalties, and/or other sanctions to be incurred
6. Reputational harm may arise when actions or poor performance of a service provider
causes the public to form a negative opinion or loss of trust about the company
7. Error/Omissions risk arises when work is inadequate, incomplete, incorrect, or when
negligent actions occur
8. Privacy (data loss/disclosure) and security (breach either logical or physical) risk of
unauthorized access to, collection of, use of, and/or disclosure of personal information
9. Loss or damage to assets risk occurs when property owned by the company regarded as
“having value”, become unavailable, lost, stolen, corrupted, or inoperable
10. Workplace safety risk occurs when there is a potential for personal injury, abuse, and/or
illness in the workplace and/or can materially impact morale and the ability of staff to
perform their duties
Upon establishing a reasonable set of consequences (i.e., limit to 10), the company’s
executives (with input from the Board) can establish a risk appetite (the amount and type of
risk that the firm is willing to seek or accept in the pursuit of its long term objectives as
generally defined in industry standards including the Institute of Risk Management, ISO31000,
and BS311001) for each potential consequence. Next, an inventory of key business processes
should be developed and each evaluated for its inherent risk (distressed value). In many
cases, this inventory already exists in a business area’s Continuity Plans. Only those
processes with an inherent risk rating that exceeds the highest risk appetite identified for a
consequence need be included in the next step. Existing safeguards/controls for that process
(which includes people, process, technology and environment) should then be evaluated
spanning people, process, technology, and environment (it’s important to include third party
service providers if they are an integral part of the business process). The effectiveness of
these safeguards/controls can be evaluated in a variety of ways including maximizing existing
data, if available, including internal or external audits performed, regulatory reviews, and/or
assessing their alignment with known effective industry standards. The end result will illustrate
the residual risk for that business process across the spectrum of key consequences
concerning the business and/or company (essentially Inherent Risk less the effectiveness
score of existing safeguards and controls produces the residual risk score) and will identify any
gap between the residual risk and established risk appetite. This will afford management the
transparency and prioritize any mitigation efforts if warranted. It may also result in a
recalibration of risk appetite.
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The following are sample qualitative Operational Risk Management and Third Party Risk
Management dashboards intended to aid in illustrating a means for qualitatively reporting key
operational risks
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It is important to keep in mind that, due to the breadth of these consequences, the
convergence of thinking by risk professionals across the organization in order to
effectively assess these key consequences is going to require breaking down the many
silos and single domain thought process through strong leadership, top-down support,
inclusion, teamwork, and most importantly effective communication and trust. Thus,
while each “domain” may have its own objectives, they all can align with a common
mission, work together, and thus benefit from the force-multiplier effect that
collaboration and teamwork brings to overcoming dynamic obstacles and challenges
In conclusion, companies today are faced with a very challenging environment in which
operational risk must be managed effectively. Using a multidimensional approach that inspires
convergence of thinking by risk professionals across the organization is paramount to
developing and implementing an effective operational risk framework and program that can be
integrated into every day business decisions and the culture of a company. Only through this
integration can an organization ensure sustained and optimal enterprise stewardship.
About the Author:
Marc S Sokol, CISM, CHS-III
Marc is an accomplished, energetic, pioneering industry leader in risk and security management with over 20 years of proven success
developing, implementing, and leading business aligned and pragmatic governance, risk management, security, privacy and compliance
solutions and programs for companies including Citibank, Merrill Lynch and Guardian Life Insurance Company. His impactful and successful
solutions and programs are founded upon a philosophy of minimizing risk while maximizing operational capability through collaboration,
teamwork, balance, efficiency, and increasing the agility and performance of the organization. Marc also gives back to the industry by
mentoring peers and actively engaging in a number of public/private information sharing partnerships including the and the Financial Services
Information Sharing and Analysis Center (FS-ISAC) where he was a founding member and Director on the Board for almost a decade, led
and/or participated in a number of industry organizations and groups including ACLI, LOMA/LIMRA, ASIS, FINRA, BITS, Institute of
Operational Risk, Governance Risk and Compliance Professionals, USSS Electronic Crimes Task Force, among numerous others, has
received numerous industry awards for his programs and contributions to the profession, and is a featured speaker and panelist at numerous
industry conferences sharing solutions and strategies with peers.
7