Predictive Modeling Can Make Insurers Better Risk Managers

The explosion of big data has given every professional services organization reason to evaluate how digital information affects their business. The challenges faced by the insurance industry are no different than any other, as companies continue to evolve their approach to generating, storing, an...

By Loren Trimble and Michael Kim • March 23, 2016

Property-Casualty Megatrends: An Insurance Primer

Most CFOs have experienced the “insurance cycle.” It’s the movement of property-casualty insurance conditions from “hard” (relatively higher prices) to “soft” (lower prices), and back again.Cycles are typically observed over a period of years, as insurers ponder annual renewals of the past year’s...

By Rick Gorvett • March 23, 2016

Special Report: Insurance at Risk

The property-casualty insurance industry is sitting on a ton of surplus capital. From most perspectives, it’s hard to see that as a negative. For one thing, it is protection against the effects of a severe economic downturn on the industry; for another, a healthy industry can attract equity and b...

By David Katz • March 23, 2016

Compliance Function Losing Access to CEOs

While corporate demands for compliance support have been increasing, the stature of the compliance function within organizations is declining, according to a new survey from Accenture.Of the more than 150 compliance officers that the consulting firm polled for its 2016 Compliance Risk Study, 31% ...

By Matthew Heller • March 17, 2016

U.S. Man Accused of Jamaican Bridge Loan Scam

The former chairman of a Jamaican call center company has been charged with operating a $10 million Ponzi scheme in which he allegedly conned investors, including three of his own relatives, by telling them they would be funding “bridge loans” to Jamaican businesses.Mark A. Jones told investors t...

By Matthew Heller • March 16, 2016

Verizon Fined $1.3M Over Use of ‘Supercookies’

Verizon Wireless has agreed to pay $1.35 million to settle charges that it violated consumers’ privacy by inserting powerful tracking code into their web browsing to deliver targeted ads for marketers.The Federal Communications Commission said Monday that Verizon began using Unique Identifier Hea...

By Matthew Heller • March 7, 2016

Cell Phone Fraud: Who’s Watching IT?

According to the Federal Communications Commission, upwards of 40% of theft in major U.S. cities involves personal cell phones. But less talked about is the hidden threat of cell phone theft that takes place in the workplace.Jesse Daves Cell phone procurement fraud has been on the rise in recent ...

By Jesse Daves and Celyna Frost • March 4, 2016

Facebook Facing German Competition Law Probe

Germany’s competition watchdog is investigating whether Facebook is abusing its market dominance by failing to adequately inform consumers about the data it collects from them.The social network’s terms and conditions ask users for permission to use their data for advertising purposes but accordi...

By Katie Kuehner-Hebert • March 3, 2016

Olympus Fined $623M Over Bribery Scheme

Olympus Corp. of the Americas has agreed to pay $623 million to settle charges it bribed doctors and hospitals to buy its medical devices as part of a scheme that generated more than $600 million in sales.The settlement announced Tuesday resolves both criminal and civil claims and is the largest ...

By Matthew Heller • March 2, 2016

Crime Doesn’t Pay, Says Harvard Bribery Study

After a year in which Department of Justice prosecutions for foreign corrupt business practices fell to their lowest level in nearly a decade, the department is vowing to step up the pace in 2016. And corporate managers who take that pledge seriously have additional reason to intensify anticorrup...

By David McCann • March 1, 2016

Special Report: Managing Cyber Risk

When President Obama signed the Cybersecurity Information Sharing Act of 2015 late last year, the outlines of a new, highly complex relationship among corporations and federal and state governments began to emerge around the issue of how the public and private sectors would interact to manage cyb...

By David Katz • Feb. 24, 2016

A Tool to Build a Cyber Defense

Corporate leadership must be involved in managing and guiding the direction of a company’s defense against cyber threats. Cybersecurity is not just an information technology responsibility, and finance chiefs should be prepared to partner with the chief information officer in the planning and ove...

By Patrick Morin • Feb. 24, 2016

Apple, FBI Face off Over Access to Killer’s iPhone

Apple said Wednesday that a court order requiring it to help the FBI break into the iPhone of one of the San Bernardino mass shooters represents an “unprecedented” threat to the security of its customers.Syed Farook’s iPhone is protected by a feature that automatically wipes it clean of all its d...

By Matthew Heller • Feb. 17, 2016

Harman Tax Exec Accused of Insider Trading

A senior tax executive at Harman International Industries has been charged with making more than $130,000 in illicit profits by trading on his advance knowledge of the electronics company’s earnings.The U.S. Securities and Exchange Commission said Dennis Hamilton, Harman’s vice president of tax, ...

By Matthew Heller • Feb. 8, 2016

Cyber Ratings Services Can Help Thwart Hackers

We learn about data breaches almost every day, and the first-line victims range from large, seemingly sophisticated companies to the local dentist’s office. Our ability to assess and understand a company’s cyber hygiene has been fairly limited, so knowing who’s safe has been a guessing game — unt...

By Craig Callé • Feb. 8, 2016

Barclays, Credit Suisse Fined $154M Over Dark Pools

Barclays and Credit Suisse have agreed to pay a combined $154 million to settle charges that they failed to exclude high-frequency traders from their “dark pool” alternative trading systems.The settlements are with the U.S. Securities and Exchange Commission and the New York attorney general’s of...

By Matthew Heller • Feb. 2, 2016

SAP Fined $3.7M Over Panama Bribery Scheme

Software vendor SAP SE has agreed to pay $3.7 million to settle charges relating to the bribery of a Panamanian government official to obtain government sales contracts.The U.S. Securities and Exchange Commission said Monday that deficiencies in SAP’s internal controls enabled Vicente Garcia, its...

By Matthew Heller • Feb. 1, 2016

U.S. Opens up Cuba to Export Financing

In the latest round of measures to open doors to trade between the U.S. and Canada, the Obama administration has lifted restrictions on American financing of exports to the island nation.The revised rules, which took effect on Wednesday, allow U.S. banks to provide direct financing for the export...

By Matthew Heller • Jan. 27, 2016

Currency Exchange Risks Worry Treasurers

Although currency exchange volatility jumped onto the list of their most worrisome risks last year, many treasury and finance professionals are only just starting to put together plans to hedge those exposures, according to the Association for Finance Professionals’ annual risk survey released ea...

By David Katz • Jan. 21, 2016

Supreme Court to Hear Insider Trading Case

The U.S. Supreme Court has agreed to hear a California case that could clarify the legal standard for proving liability for insider trading.Attorneys for Bassam Salman are hoping to convince the court he was wrongfully convicted for an insider trading scheme involving members of his extended fami...

By Matthew Heller • Jan. 20, 2016

SEC Issues Milestone Whistleblower Award

In a milestone for the U.S. Securities and Exchange Commission’s whistleblower award program, the agency on Friday announced a $700,000 award to an industry expert who provided it with “high-quality analysis” in an enforcement action.The award is the first the SEC has issued to someone outside a ...

By Matthew Heller • Jan. 18, 2016

Goldman Fined $15M Over Short-Sale Reviews

Goldman Sachs has agreed to pay $15 million to settle charges it failed to perform adequate review of securities that customers had asked it to “locate” for short sales.Federal regulations bar brokerages from accepting short sale orders unless they have borrowed the security, entered into a bona ...

By Matthew Heller • Jan. 18, 2016

Feds Move to Curb Real Estate Secrecy

In a move to curb money laundering, the U.S. government will temporarily bar buyers of high-end properties in New York City and Miami from hiding behind shell companies.The Treasury Department’s financial crimes enforcement network, FinCEN, on Wednesday issued geographic targeting orders (GTOs) r...

By Katie Kuehner-Hebert • Jan. 13, 2016

Fraud Analyst Found Liable for Insider Trading

A former Capital One Financial analyst has been found liable for insider trading in a case that hinged on whether the non-public sales data he used to trade in retail stocks was “material.”A Philadelphia jury agreed with the U.S. Securities and Exchange Commission that Nan Huang enjoyed a “signif...

By Matthew Heller • Jan. 13, 2016

Using Captives For Cyber Risk Management

Mary A. Chaput Imagine owning an insurance company that you can control, that reduces the cost of your insurance by eliminating underwriting expenses, and that tailors the cost to your own identified risks and risk appetite. And that’s all while reducing your tax burden by allowing the write-off ...

By Mary A. Chaput • Jan. 11, 2016