Big data has been one of the hottest topics in the corporate and public sectors throughout the past several years, but general information governance outside of this advanced trend should still be a focus area for decision-makers. Data management, regardless of volume, is a critical aspect of overall security and corporate integrity, and cannot be overlooked at any stage of operations.
American Banker recently reported that a failure to adequately manage data on behalf of JP Morgan is now being viewed as one cause of the Bernie Madoff scandal. Madoff is still in jail, and is now synonymous with bank fraud and the financial crisis, as his actions affected a high volume of clients and were believed to account for nearly $20 billion in losses.
According to the news provider, a complete lack of oversight and over-dependence upon outdated solutions were at least partly responsible for the scope of Madoff's Ponzi scheme, as more advanced and consistent actions could have stopped the theft long before investigators brought it to light. The source stated that certain information was locked in silos that should have been monitored by JP Morgan Chase and other banks that were impacted by Madoff.
Generally speaking, the most damaging data breaches and instances of fraud are those that go on for months or years without being recognized or reconciled. The Madoff scandal is a perfect example of this fact, as investigators are still working to put a date on the beginning of the scheme. Businesses, even those that do not typically manage financial data or other sensitive information, must protect themselves from fraudulent activity.
This begins and ends with data management. By creating more customized and updated information governance policies and deploying cutting-edge security software and network monitoring tools, companies can minimize their risk of victimization.