We are living in an unprecedented era of corporate risk.
A 2016 report released by the Computing Technology Industry Association estimates that three out of every four organizations within the last year have been hit by at least one security incident. In the last year alone, there have been breaches and attacks at financial institutions, major telecom companies, universities, healthcare organizations, gaming companies and transportation systems.
Risk can come in many different forms, operational, reputational, technological, product, cyber security and fraud, to name a few. A single event, like Samsung choosing to continue shipping the Galaxy Note 7 after multiple customer complaints of explosions, can force a company to halt production on its flagship offering. For Samsung, this erased $17 billion of the company’s market value in months.
Many industries, like healthcare and financial institutions, are subject to further scrutiny within their fields, with regulations like the Health Insurance Portability and Accountability Act (HIPAA) and the Fair Credit Reporting Act detailing how they can handle data.
And penalties for these breaches and violations are increasing in both frequency and in fines. In late 2016, Wells Fargo was hit with the largest fine in Consumer Financial Protection Bureau history for its non-compliant sales practices. This risky behavior cost the company $100 million in fines and its CEO was forced to resign.
While it may seem like avoiding corporate risk is unfeasible, in reality companies could leverage complex analytics that can reveal issues before they become widespread. Addressing the problem through analysis of data can give company agility, enabling them to link reports between their risk, finance and other sectors of their business. By analyzing multiple data sources, a company can rapidly identify activity that might need further review. It can look for trends in key metrics so companies can proactively identify and deter — even potentially stop — cyber security and fraud breaches.
An analytics solution needs to be flexible to acknowledge the different types of risks more common in different industries, so it can be customized to a company’s needs. It needs to be able to take on risks like fraud and security quickly to prevent permanent corporate damage.
To address the need for this kind of analytic ecosystem, Teradata has positioned our Advanced Analytics group, business consultants and Information Security Center of Expertise to implement tailored solutions for business so they can mitigate risks like physical security, cyber security and fraud. Aside from identifying and stopping malicious actors outside your company, Teradata’s risk management solution can help companies stop the most prevalent actors in a breach — internal employees, contractors and partners. This solution adds value to a company. It provides data quality and transparency, reduces operational complexity, reduces the effort needed to change, and provides simple reporting methods. It is also free of human bias and doesn’t require manual work, like writing and testing rules.
Risk management is a growing field that all companies need to take seriously. Companies can no longer afford to guess if they are at risk or not. Teradata’s solution combines data management and an analytic ecosystem to respond to emerging risks. Our simple and scalable solution provides companies with the ability to be responsive to threats from all directions. Through Teradata’s risk management solution, companies can use analytics technology to aggressively shorten the time to value versus typical risk management approaches.
Charles Griffith serves as Practice Director for Security and Fraud within the Business Consulting Group at Teradata. Prior to joining Teradata, Charles and his team developed and managed a very large and highly acclaimed Data Warehouse program that was covered in reviews by Computer World, Info Week, American Banker and others. Charles has provided thought leadership as a presenter at international conferences such as the American Marketing Association, UC Berkeley Fisher Center for IT, FIMA, DAMA, and Teradata Partners. Charles has a BBA in Accounting from the University of Texas at Arlington.