Feature
PRACTICE
Mind wars Intellectual property theft is becoming big business globally, and risk managers have a key role to play in protecting their organisations BY ROBERT CHAPMAN
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raud is omnipresent and highly corrosive. It is commonly recognised as among the most serious risks facing UK businesses today. Fraud is perpetrated by individuals and businesses through a variety of dishonest and illegal activities for financial gain. When conducted by individuals, these may be external threat actors or even employees. It can result in a loss of market share, customers and sales followed by a reduction in turnover and profitability. Depending on the scale of losses, it may also lead to permanent job losses. A serious fraud event can result in a business struggling to recover for years, or even lead to its eventual collapse. It surfaces in a myriad of business functions, and its perpetrators are constantly evolving new ways to search out company vulnerabilities. The growing prominence of state-sponsored fraud is even more insidious and is often more debilitating. Fraud is a problem for all companies irrespective of size. Given the time and resources needed to minimise fraud, as a consequence of their size, small and medium-sized enterprises (SMEs) are particularly vulnerable. All businesses have to be constantly vigilant. They have to be aware of the known methods of fraud, the government agencies providing advice and the organisations to turn to in a time of crisis.
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Perpetrators of IP cybercrime are seeking highly prized business secrets – not already disclosed through patents – and proprietary business information that can be quickly sold
Enterprise Risk
