Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 5)

EDITORIAL François Masquelier, Chairman of ATEL - OCT N°91 - malware or bugs in our IT networks to create a weakness and knock a hole in our payment systems. A review of internal controls should be an absolute priority for all treasurers. This is a real risk, a significant risk, even if not usually enormous. It has become ever more frequent in the last few months, and it is a risk that we cannot guard against too carefully. If you want to arm yourself against this growing risk given its magnitude and the existence of actual documented cases, you will have no problem persuading an Audit Committee, a Board or a CFO to invest in a robust and reliable payment and treasury system, with totally encrypted messages being transmitted between one IT device and another, ISO-certified or at least tested against intrusions. Surely we owe that to ourselves as part of our reputation and our duty of care? Combating rising fraud has become a major objective and priority for treasurers. The answer lies in good sense, investment, procedures and efficient and effective controls. And it doesn't happen only to other treasury departments, believe you me! A recent DTCC survey, the "Systemic Risk Barometer Study" estimated that cyber-risk was the top worry for 46% of respondents, while 80% of respondents put it in the top five main risks in terms of potential impact. The sophistication, the perseverance, the creativity and the inventiveness of cyber-crime and fraud sends a shiver up our spines. It is our duty as treasurers and treasurer associations - since risk management is of the essence in our job - to put our respective colleagues and members on their guard against this alarming danger. There can never be too much communication and information when it comes to preventing financial risks. The threat is real. It is not something dreamed up in a Tom Clancy novel or the consultants' latest hobby horse. We need to keep up our guard and be ready to react. Thinking about risk and trying to prevent it is often a way of exorcising it, and an opportunity to sell certain investments in people and systems. So why not take advantage of this opportunity and of the (bad) publicity to "sell" certain projects in-house, so as to strengthen our beloved internal controls? You need to add this point to your good treasurer's roadmap if you have not yet already set off down this road. Always remember that it is better to be safe than sorry, as the popular saying goes. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE For some time we have been seeing a real upsurge in cybercrime and fraud, particularly affecting the treasury function. So, is this a sign of the times, a consequence of the advances in IT technology, an inevitable risk in a time of financial crisis, or simply a passing fad? Nobody knows. What is certain is that we are all the targets of attempted fraud - frauds that may perhaps seem somewhat clumsy, but that are still very real frauds, like the notorious CEO impersonation fraud. Should we be worried? Absolutely. However, as always in similar circumstances when faced with a problem, we can take advantage of it to put solutions in place and strengthen our internal controls. When it comes to controls and security systems, you can never have too many of them. Prevention is the best and most effective medicine. What seems to have become a phenomenon of our society should put us on our guard, to make us more vigilant and cautious. Let us make the most of this windfall to review our policies and, for example, make sure that no employee refusing to break the rules on payments faces punishment or reprimand, even if instructed by the CEO himself. Why not grasp the opportunity to further centralise payment and receipt procedures to limit risk and keep down contagion? Let us revisit our processes and internal procedures to flag up, reinforce, secure and close any doors that are open to fraud. You can never be too careful with cyber crooks. As with drugs and doping, it seems that these smalltime evil geniuses are always one step ahead of the serried ranks of brave treasurers. We need to be wary of emails As with drugs and doping, apparently coming from it seems that these smallbanking colleagues or time evil geniuses are always counterparties, by which the crooks try to place one step ahead of the serried / NOV / DEC 2015 The upsurge in cyber crime and fraud is hitting treasury departments as well ranks of brave treasurers. 5

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015

Table of contents
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
CEO impersonation
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise

Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015