| | DECEMBER - 2021ENTERPRISE SECURITY8Over the last decade, we have seen a steady increase in cyber capabilities that executives can leverage to support board-level commitments and the individual Lines of Business (LoB). Furthermore, threat actors, such as organized crime and nation-states, are often buoyed by the myriad list of challenges modern organizations face (e.g., dispersed workforce, disruptive technology, siloed business verticals, complex legal and regulatory frameworks). As such, adversaries feed from this complexity, leading to losses in the areas of Fraud, Waste, and Abuse (FWA).Managing FWA is not a new problem, in 2018, federal inspectors general (IGs) identified $36.2 billion in potential savings and reported $15.1 billion in investigative recoveries and 5,131successful prosecutions and civil actions. Each industry is affected to different degrees; as such, organizations craft risk appetites, thresholds, and tolerances tailored to minimize exposure to threats. This exercise can be nuanced ­ for example, an organization may be willing to accept some level of risk for financial loss; however, there may be zero tolerance for reputational impact or regulatory inquiry. The level of risk an entity accepts, and the tolerable level of risk is fundamentally an assessment of the desired future state of the risk environment within an organization wishes to work.Outside some of the more prominent examples shown in the media, FWA is often nuanced and persistent. This can manifest as fraudulent transactions, overpayments, duplicate payments, or processing errors and is more challenging to By John Kupcinski, IT Transformation Delivery, Freddie MacA NEW MODEL FOR CYBERSECURITYKey takeaways:· Understand risk appetite, tolerance, and targets as it relates to fraud, waste, and abuse · Understand the Zero Trust model and how it can be applied to risk tolerance and targets· Call for action to address ZTA mitigate FWAFraud, Waste and Abuse is typically characterized as:· Fraud is the intentional misrepresentation of information to gain undeserved payment.· Waste involves spending dollars on services that are unnecessary.· Abuse involves a questionable practice, which is inconsistent with accepted industry or business policies.John KupcinskiIN MY OPINION
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