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The Basics Of Securing Your Company’s Finances

brettclawson75 profile image Brett Clawson ・3 min read

security

The Basics Of Securing Your Company’s Finances

Corporate fraud is bankrupting companies. Some things that look simple such as data breach are drowning business in liability. Small businesses are not the only ones that have to grapple with debilitating security issues. Global corporations are not faring any better. Both of them have to go beyond the basics of securing their finances. Speaking of basics, here is the bare minimum.

Choose your businesses partners wisely

A company's financial data cannot stay secret. Suppliers, government agencies, advisors, and investors can have access to some level of sensitive information. Every company has to choose the people it deals with. You must ensure that every person or body corporate who has access to your data has complied with the basics. They should have an adequate privacy policy.

Dealing with non-compliant companies is a hazard that a company cannot afford. The company has to choose the information it can share. When dealing with startups, consider your data at risk. These companies have barely set up structures. The wrong people know that, too.

Start with analog security

The old school way of securing finances is by ensuring your physical safes and security on transit is intact. About 40% of business revenues result in cash payments. That money has to be protected. It starts with accountability within the firm. Set up a system of accountability for everyone who handles cash.

You should destroy all documents that have financial information immediately the data becomes obsolete. A paper shredder comes in handy here. If you don't have one, you can outsource. Don't hand over your documents for recycling before you shred them.

Automate your finance systems

At first, digital systems were considered a risk in themselves. They still are a risk if the strategy is weak. Before you automate any of your systems, have a strategy of how you will protect it from abuse. Automated systems gather extensive data. Such data can provide valuable business insights. It can also go to the wrong hands in one click.

Every company should have a way in which it treats this sensitive information. It should also have robust digital systems that are resilient in the face of attack.

Protect your data

Data is proving to be the future of business. It is the source of business intelligence. However, it is the weakest point for a company. Even global corporations such as Yahoo and Facebook have loopholes that hackers exploit. Supplement the company's password policy with robust analytics. Fraud detection with Confluent can reduce your risk factor.

Confluent uses complex data tools to detect breaches. It focuses on the integrity of that data—mostly gaps, inconsistencies, and speed. However, such programs rely heavily on automated systems that study data logs at the point of entry or exit.

People who engage in financial fraud are specialists in this trade. They have mastered almost every dark art out there. The trick is not to remedy; you have to stay ahead. If you cannot, you need to detect and act early.

Review your statements regularly

Hackers who target money can add bugs that divert some money into their accounts. Staying on top of all company statements can help you detect any anomalies. Financial statements can be complicated; you may need qualified analysts to detect possible fraud.

Conclusion

Securing your company finances goes beyond the basics. The company has to invest in several tools that will help them monitor their risk situation. Keeping financial data in small pockets can reduce the risk of loss. Digital systems can improve your security situation.

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