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1 Cyber Ethics or what should a caveman be allowed to Tweet? Hugh H. Penri-Williams CCEP-I CFE CIA CCSA CRMA PIIA CISA CISM CGEIT CRISC ITIL-F CT st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 1 Aloha - Hugh Penri-Williams Disclaimer! Unless indicated otherwise the opinions and views expressed herein are those of the author alone and do not necessarily reflect the official policies or positions of the ACFE, IFPF, ISACA, ITGI, AFAI, The IIA, IFACI, CIIA UK & Ireland, DIIR, G31000, ISO, ISF, ex-alcatel-lucent, SWIFT, CIGNA or any other organization apart from my own. 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 2 1
2 Theme With so much information floating around in so-called cyberspace, how do you know what is legitimate and what is not, and how can it harm your organization? In this session we shall explore why ethics are an essential, non-technical defense in a cyberspace that is increasingly falling prey to fraud and how applying ethics generally can benefit your own organization directly. 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 3 I Have A Problem and several of my friends, acquaintances, colleagues and contemporaries would definitely agree with that! How is it that as fast as our technology progress, certainly in the industrialized world but also in pockets elsewhere, How is it that the human element doesn t (manage to) follow or even regresses? This, for me, is reflected in our attitude to things Cyber, which has become an irritating fad, like esomething. 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 4 2
3 What Do We Mean By Progress? So, from where comes that smug belief that our ethical make-up is more advanced today than, say, in Roman times? Surely, just watching the evening news ought to dispel that delusion very quickly. People will not only be people, they will all too often also be animals! 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 5 Technology vs. Humanity It has become appallingly obvious that our technology has exceeded our humanity Albert Einstein 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 6 3
4 ETHOS attitude, background, beliefs, civilization, culture, customs, ethnicity, humanity, idea, mores, nation, philosophy [e.g. ethical behaviour expounded by Dalai Lama] society, thinking, traditions, values, viewpoint, way of life 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 7 All crime is a kind of disease and should be treated as such. Mahatma Gandhi 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 8 4
5 What does Fraud mean? Is Fraud always illegal? Fraud = an intentional deception made for some form of gain è Fraud is an inherent risk that may occur whenever and wherever profit can be gained by not abiding by laws, rules, regulations, etc. è This risk can be managed by: q Preventing it, i.e. putting controls and other measures in place q Reengineering activities where a potential fraud was identified q Deterrence: communicating on the measures in place to prevent fraud 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 9 What has changed? 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 10 5
6 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 11 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 12 6
7 1st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 13 Global Mindset Belief / Value Belief / Value Each person is expected to have an opinion and to express it freely. Deference is to be given to persons in power or authority. A person is expected to do whatever is necessary to get the job done. Some work may be below one s dignity or place in the organization. 1st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 14 7
8 The Internal Pig-Dog Where Your Pig-Dog Reigns Health & Nutrition Fitness & Sports Office Routine Completing Projects New Undertakings & Learning Tidying-Up & Neatness Making Important Decisions Relationships / Contact With Others Civil Courage Education & Culture Self-Composure & Meditation Generally 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 15 Other Saboteurs The Pig-Dogs in Your Team Ego Trip Eternal Victim Safety First Accommodating Indispensable Traditionalist Noncommittal Down-Player First See What Others Are Doing Keep Under Wraps 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 16 8
9 How To Avoid Ethics Problems 1. Recognize there is no difference between "business ethics" and "personal ethics. There is no way to justify doing something in business that you would not do in personal life. 2. Establish a corporate culture that rewards ethical decisions and practices. Set the right tone at the top and recognize employees who have made honorable decisions and choices. 3. Set up an internal communication system that allows employees to express concerns directly to top management if they suspect wrongdoing or are uncomfortable with current practices. Consider appointing an ombudsman. 4. Work with your own accounting people to reinforce the highest reporting and accounting standards and expectations. When the line between doing what is right and what is legal is fuzzy, move back to what you know is right. 5. Know what is happening in your own company. Routinely walk around your company and talk with your employees directly. Schedule brown bag lunches with your own people in your office. Be accessible and interested. Loren G. Carlson, founder and chairman of CEO Roundtable 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 17 P.E.A. as well as P.D.A.? Technology may have made our lives more efficient, but the latest {sic} developments in corporate America have shown us that we may need an upgrade in the ethics area. Here are a few products that have some backbone: Global Positioning Spitzer, Shell-Checker, etc Questions for this ethical query engine might include these: Is it O.K. to engage in insider trading? Should I move my corporation offshore to avoid paying taxes? Can I continue to make television appearances from my prison cell? Now, the Personal Ethical Assistant by MATT RICHTEL July 14, 2002 Copyright 2002 The New York Times Company 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 18 9
10 Sadly, this is far too often (still) true: "The doctrine which, from the very first origin of religious dissensions, has been held by bigots of all sects, when condensed into a few words and stripped of rhetorical disguise, is simply this: I am in the right, and you are in the wrong. When you are the stronger, you ought to tolerate me, for it is your duty to tolerate truth; but when I am the stronger, I shall persecute you, for it is my duty to persecute error. Thomas Babington Macaulay, poet, historian, politician ( ) 1 st Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 19 Mahalo plus some friendly advice Everyone starts off with a bag full of luck and an empty bag of experience. The trick is to fill your experience bag before your luck is gone. Anon 1 st 20 Belgian Fraud Awareness Event - ACFE Chapter Belgium - 14 November 2017 Brussels 20 10
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