5 Benefits of Proper IT Security Governance

In today’s economic, political, and social environment, customers are demanding the security of their information, as the concern about privacy and identity theft rises. Business partners, suppliers, and vendors are requiring security from one another, especially when they provide mutual network and information access. National and international regulators are asking enterprises to prove that they obey privacy laws and implement high-security measures.

In July 2012, The Association of Certified Fraud Examiners released their 7th Report to the Nation on Occupational Fraud and Abuse. The information contained in the report is based on more than 1,300 cases of occupational fraud in nearly 100 countries, provided by Certified Fraud Examiners (CFEs) who investigated those cases. The summary of findings in the report is eye-opening. Here are a few of the highlights from the report:

• The typical organization loses 5% of its revenues to fraud each year.
• The median loss caused by the occupational fraud was $140,000.
• More than one-fifth of the surveyed cases caused losses of at least $1 million.
• Corruption and billing schemes pose the greatest risks to organizations throughout the world.
• Nearly 50% of victim organizations do not recover any losses that they suffer due to fraud.

Superior information security requires a combination of smart decisions and intelligent security strategy. Big budgets to implement new technologies aren’t solving many of the problems generated by fraud and theft. It is also important to know when, who and how to deal with the complexity of IT Security. Five basic outcomes can be expected to result from developing an effective governance approach to information security:

• Reduced risks and potential business impacts to an acceptable level;
• Strategic alignment of security with the enterprise strategy and the organizational objectives;
• Business value generated through the optimization of security investments with organizational objectives;
• Preserved and increased market share due to the reputation for safeguarding information;
• Efficient utilization of security investments that support organization’s objectives.

As I wrote before, effective IT Security Governance is fundamental to achieving business objectives, maintaining regulatory compliance and meeting stakeholder requirements. Security and privacy are key matters that affect every business.