11 - Data risk management and ethics

Question 1

What is the primary focus of data risk management?

Answer 1

Using data to stop bad actions and protect profit

This can lead to a safer and better business.

Question 2

List the five pillars of managing risk and ethical compliance.

Answer 2

• Data privacy
• Data security
• Data ethics
• Data compliance
• Data fraud prevention

Question 3

Define data privacy.

Answer 3

Determines how data is used internally, shared, collected, or stored, and the regulatory restrictions in which the business operates.

Question 4

Define data security.

Answer 4

The practice of protecting data from unauthorized access, corruption, or theft throughout its entire life cycle.

Question 5

What is data ethics?

Answer 5

The responsible use of data, doing the right thing for people and society even when no one is looking or checking.

Question 6

What does data compliance ensure?

Answer 6

Data is organized and managed to meet enterprise business rules and legal and governmental regulations.

Question 7

True or False: Data fraud is the deliberate fabrication or falsification of data for financial gain.

Answer 7

True

Question 8

What is the motive in the context of data misuse?

Answer 8

The reason for committing a transgression.

Question 9

What does the term ‘means’ refer to in data fraud?

Answer 9

The tools or methods to commit a crime.

Question 10

What is the opportunity in relation to data security breaches?

Answer 10

The occasion for unauthorized access or misuse of data.

Question 11

Fill in the blank: Data _______ involves ensuring data is legally collected and stored.

Answer 11

privacy

Question 12

How can data ethics be promoted in business practices?

Answer 12

By ensuring transparency in the use of data in any business activity.

Question 13

What problem did Jérôme Kerviel face regarding compliance at Société Générale?

Answer 13

He exploited internal compliance systems to commit unauthorized trades.

Question 14

What is the significance of a ‘single source of truth’ in data management?

Answer 14

It helps automate processes and makes it harder for individuals to cheat.

Question 15

What role does data play in stopping unethical behavior in organizations?

Answer 15

Data can limit the space in which employees can behave unethically.

Question 16

What are some automated methods to detect data fraud?

Answer 16

• Anomalous invoicing patterns
• Spikes in activity
• Figures that won’t reconcile

Question 17

Describe the outcome of the case study involving investment research at an investment bank.

Answer 17

It led to the creation of RIXML, improving transparency in stock recommendations.

Question 18

What is one benefit of working with regulators in data management?

Answer 18

It creates a positive environment and mutual gain in addressing ethics and fraud problems.

Question 19

What is a common barrier to effective communication between businesses and regulators?

Answer 19

Different cultures and a lack of understanding of data management.

Question 20

Fill in the blank: Data _______ is crucial for identifying and mitigating fraud opportunities.

Answer 20

quality

Question 21

What can improve data quality and help reduce fraud in business?

Answer 21

Removing duplicates and ensuring accurate data entry.

Question 22

True or False: Data transformation can lead to increased motivation for data misuse.

Answer 22

True

Question 23

What should be built into data projects from the start?

Answer 23

Fundamentals of data privacy and security.

Question 24

What is the importance of data protection?

Answer 24

Data is valuable and needs to be protected from misuse.

Question 25

When should data protection be implemented?

Answer 25

From the time the data is captured, not added as an afterthought.

Question 26

What must be included in project proposals regarding data?

Answer 26

Methods of data protection, security, ethics, and fraud protection.

Question 27

What is expected of ethical behavior in data management?

Answer 27

Ethical behavior is expected but does not always happen.

Question 28

How can data help protect organizations?

Answer 28

By removing conflicts of interest or subjective decision-making.

Question 29

What is key to compliance regarding employee behavior?

Answer 29

Visibility of employee behavior.

Question 30

What does monitoring employee behavior involve?

Answer 30

Not just sounding an alarm when rules are breached, but also monitoring patterns of behavior.

Question 31

What is the relationship between data sharing and regulators?

Answer 31

Limited data sharing can achieve results and boost trust between employers and regulators.

Question 32

True or False: Sharing ideas about data analysis can create suspicion.

Answer 32

False.

Question 33

Fill in the blank: Ethical behavior is expected but, for many reasons, does not always _______.

Answer 33

happen.

Question 34

What can data analysis during investigations foster?

Answer 34

Collaboration and productivity.

Question 35

What are the benefits of breaking down barriers in data sharing?

Answer 35

Creates more understanding during serious investigations.

Question 36

What is a key factor in achieving compliance?

Answer 36

Monitoring patterns of employee behavior.

Question 37

What does the visibility of employee behavior help with?

Answer 37

Compliance.

Question 38

What should all stakeholders agree to in project proposals?

Answer 38

Data protection, security, ethics, and fraud protection methods.

Question 39

What does the term 'limited data sharing' refer to?

Answer 39

A useful way to achieve results and boost trust between employers and regulators.