Since 2008, banks have been the subject of extensive regulations, and for the most part they have passed these on to their clients. CFOs have inherited complex multi-layered compliance obligations that they handle on a daily basis, but the challenges far exceed simple administrative obligations. The slightest doubt about a transaction’s compliance can unleash a chain reaction by the banks that can quickly have a disastrous impact on liquidity. CFOs must proactively tackle these issues to anticipate bank controls and defuse any misunderstandings before a compliance audit is launched, in the meantime blocking transfers and financing in as a precautionary measure.
Guarding against fraud now functions like a business.
Fraud is not just an internal control problem. It’s a major risk that must be guarded against just like a natural disaster. Three factors have radically transformed the situation: fraudsters now use social engineering and no longer need internal collaborators; hackers leverage technology to prepare attacks using social engineering, to steal sensitive data or to rob a company blind; and finally, fraud is operated like a business, reinvesting a portion of its massive earnings into R&D and breaking itself down into a full value chain. Where expected losses are unfortunately limitless, insurance quickly reaches its own limitations. Here again, CFOs are the first line of defence, and can no longer rely on paper or manual procedures to combat this threat. They must embrace new technologies to stand in for human oversight, which has been surpassed by artificial intelligence, machine learning algorithms and blockchain.
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