Maximising the Business Value Through Fraud Management

Maximising the Business Value Through Fraud Management

Dane Warren – Head of Security and Risk (Virgin Mobile)

AGENDAAGENDA BusinessBusiness StrategyStrategy

Value MaximisationValue Maximisation

Enterprise Risk ManagementEnterprise Risk Management

Business OpportunitiesBusiness Opportunities

Fraud Management Value MaximisationFraud Management Value Maximisation

New Threats – Vectors and ResponsesNew Threats – Vectors and Responses

SummarySummary

1. Right Goals

2. Value Proposition

3. Business Model

4. Trade Offs

5. Fit

6. Continuity

BUSINESSBUSINESSSTRATEGYSTRATEGY

From "Information Technology Strategy and Management: Best Practices" by Eng K. Chew and Petter Gottschalk. Information Science Reference, 2009

MarketMarket

Core ValuesCore Values

VisionVision

Mission

Strategic Strategic PlanningPlanning

BUSINESSBUSINESSSTRATEGYSTRATEGY

VALUE MAXIMISATION 101VALUE MAXIMISATION 101

• “How do we increase market penetration / share while reducing costs?” CONFLICT

• Understand stakeholder constraints and opportunities through an integrated risk management framework.

ENTERPRISE RISK ENTERPRISE RISK MANAGEMENTMANAGEMENT

• Availability: Are your systems up?

• Access: Can you get to your data?

• Accuracy: Is the data right?

• Agility: Can you grow and change?

Business Priorities

From "IT Risk: Turning Business Threats Into Competitive Advantage" by George Westerman and Richard Hunter. Harvard Business Press, 2007.

ENTERPRISE RISK ENTERPRISE RISK MANAGEMENTMANAGEMENT

Rare Unlikely Possible Likely Almost Certain

Severe M H H VH VH

Major M M H H VH

Moderate L M H H H

Minor L L M M H

Negligible L L M M H

Impact: Business Assessment

Likelihood: Technical Assessment

ENTERPRISE RISK ENTERPRISE RISK MANAGEMENTMANAGEMENT

• Decision support tool.

• Governance – appropriate accountability and alignment.

• All risks, all places all types.

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES

How do we add value?

How do we make money?

How do we save money?

Competitors?

FRAUD MANAGEMENT VALUE FRAUD MANAGEMENT VALUE MAXIMISATIONMAXIMISATION

• Deliver controls that enhance opportunities and reduce constraints for multiple stakeholders.

• Example: Reduction of support costs through unified identity management solutions that can also improve customer experience and decrease project delivery times.

FRAUD MANAGEMENT VALUE FRAUD MANAGEMENT VALUE MAXIMISATIONMAXIMISATION

• Deliver controls that enhance opportunities and reduce constraints for multiple stakeholders.

• Example (Bank): Market fraud solutions to customers to enhance brand equity, increase market share and reduce risk.

FRAUD MANAGEMENT VALUE FRAUD MANAGEMENT VALUE MAXIMISATIONMAXIMISATION

• Deliver controls that enhance opportunities and reduce constraints for multiple stakeholders.

• Example (Telecommunications): Offer Clients security tools as part of existing packages to increase revenue per unit (RPU) and provide product differentiation.

FRAUD MANAGEMENT VALUE FRAUD MANAGEMENT VALUE MAXIMISATIONMAXIMISATION

• Deliver controls that enhance opportunities and reduce constraints for multiple stakeholders.

• Example (Service Management): Create a fraud portfolio that can be sold / leased to customers. E.g. PCI-DSS tools and services.

FRAUD MANAGEMENT VALUE FRAUD MANAGEMENT VALUE MAXIMISATIONMAXIMISATION

• Deliver controls that enhance opportunities and reduce constraints for multiple stakeholders.

• Example (Business Intelligence): Use logging information to provide enhanced Business Intelligence information.

NEW THREATS NEW THREATS (VECTORS)(VECTORS)

• Contactless cards

• Mobile payments

• Social networking

• Cloud computing

• What do we do???

NEW RESPONSESNEW RESPONSES• Scenario planning

• Identify, communicate and assign risks

• Be innovative

• Defence in depth

• Manage your risk portfolio

• Maximise business value

SUMMARYSUMMARY

Business Context

ERM Opportunities

•Decision support

•Accountability and alignment

•Opportunities

•Holistic

•Common language

Value Maximisation

•Conflict

•Stakeholders

•Constraints

•Delivering value

•Decision Polarity

• Add Value

• Make money

• Save Money

• Compete

Business Strategy

•Right Goals

•Value Proposition

•Business Model

•Trade-Offs

•Fit

•Continuity

•Mission

•Vision

•Values

1 2 3 4

SUMMARYSUMMARY

FRAUD CONTEXT

New Responses Summary

•Risk Management

•Scenario Planning

•Innovation

•Controls

•Maximise Value

New Threats

•Contactless cards

•Mobile payments and banking

•Social Networking

•Cloud Computing

• It’s all about business

• It’s all about risk

• It’s all about you

Examples

•Federated identity management

•Market fraud solutions

•Client security tools (consumer)

•Client fraud tools and services (enterprise)

1 2 3 4

QUESTIONS?QUESTIONS?

… … lead the change.lead the change.