Risks: does your business have immunity? Business security and external fraud risks (IV)

Risks: does your business have immunity? Business security and external fraud risks (IV)

Rolandas Mištautas, Head of Law Firm KONSUS LEGAL

Today, companies are increasingly using a variety of technological solutions to optimise business processes and eliminate additional labour costs. As a result, business, document, HR and financial management systems are becoming business information bases and carriers of important information. However, if security requirements are not adequately taken into account, such information can sometimes be subject to theft and loss.

To avoid this, the potential risk of external events, i.e. the potential losses due to any uncontrollable external events, must be carefully assessed. In the case of the Business Security and External Fraud Risk Algorithm, factors such as:

1. Insufficient quality of the software used. The latter can lead to disruptions or failures in the company's information systems, potential losses due to loss of company data, and the cost and time required to restore the company's systems to normal operation. Failure to ensure the security of a modern enterprise's operations in a timely manner may also result in indirect losses due to insufficient IT security measures, as the lack of such measures significantly facilitates internal and external fraud.

2. Failure to update the anti-virus software used by the company in time, or the possibility of unauthorised access to company systems or databases, opening the door to computer fraudsters and hackers.

3. Problems with the protection of the data of the company's customers and other relevant data, which could lead to collateral damage - e.g. if the confidential data of the company's business customers were to be disclosed, both the company's reputation and the harmonious relationship with its existing customers would be at risk.

Businesses therefore need to closely monitor, periodically review and, if necessary, promptly adjust and improve their information security principles, processes and measures to ensure information security.

Every company must have an effective information security policy model tailored to its needs. And information technology must be sourced only from trusted suppliers and overseen by accredited professionals - with whom confidentiality agreements must be signed to ensure the security of your business information.

Updated: 2023-03-31