The Fraud triangle is a framework for spotting high-risk fraud situations. Organization then uses this framework to analyze their vulnerability to fraud and unethical behavior and it provides a way to avoid being victimized. This paper with discuss how nation state sponsored attacks against businesses might be influenced by their respective state politics as it relates to separation of government and business. This paper will also discuss the fraud theory triangle as it relates to motivations for various threat actors and summarize key concepts that business risk managers should take into considerations.
There are three key elements in the fraud triangle which are opportunity, motivation and rationalization. Opportunity is the element over which business owners have the most control (Coenen, 2018). Businesses try their best to limit opportunities for fraud to reduce the opportunity for fraud to occur. The opportunity to commit fraud happens when employees have access to information that allows them to commit fraud. Some manager have become responsible for employees and their function which leads to more control over companies area which means more access to confidential information. Access must be limited to only those systems, information and assets that are truly necessary for an employee to complete his or her job.
Motivation is part of the fraud triangle that is a pressure or a “need” felt by a person who commits fraud. Motivation is also why the individual commit fraud, which for example can be financial hardship like debt. The motivation is usually personally driven. It can be also be the desire to want more but do not have the means to get it, so as a result they commit fraud. The motivation to commit fraud can also be nonfinancial as well. There could be pressure to performance or met company goals at work or a need to cover up poor performance due to addictions like gambling and drugs Coenen, 2018). This may also motivate someone to commit fraud.
The last part of the fraud triangle is rationalized. Rationalize is what is used to determine that committing fraud is ok and worth committing for a variety of reasons (Coenen, 2018). Rationalizing this behavior can also mean justifying this behavior and this is not always are easier process. For individuals that are dishonest it may be easier but for individuals with high morals and standards it can be complexed. They have to reprogram there mind to believe that fraud is ok and excuse their negative behavior. For example a thief may convince his or her self to believe that they are borrow money and not stealing it because they intend on paying it back one day ad that they deserve it. To try and prevent fraud business owners have to take control of their companies to prevent fraud. By controlling the opportunity to commit fraud, it can be difficult for employees to rationalize fraud which limits opportunities for fraud to occur and as a result reduces fraud.
Politics and business can also have their fair share of attacks and fraud committed among one another. Businesses and politics can get tricky. A lot of businesses and organization sponsor and fund politicians and there initiatives and cause but if there is an incident or disagreement between the two parties it could cause a separation of government and business. For example in 2017 Hilary Clinton’s attack the National Rifle Association on social media while the aftermath of the Las Vegas concert massacre was still unfolding. Clinton launched criticism against the National Rifle Association over the issue of gun silencers (Hughes, 2017). The comments where frowned on by The White House Press Secretary Sarah Sanders. She stated it’s easy to criticize but only one person with blood on their hands and it’s that of the shooters and it’s not time for us to go after individuals or organizations (Hughes, 2017). One another example would be the after the February 14, 2018 school shooting in Florida attack. There was a wedge between the National Rifle Association voter’s and pro-gun legislators. In addition more than a dozen companies severed ties with the National Rifle Association in the wake of the school attacks ending discounted rates and fares for the National Rifle Association members. This issue also caused various attacks on the National Rifle Association with attacks on the second amendment and others see the attacks as proof of media bias and as a result an explosion is National Rifle Association memberships (Hawkins, 2018). As results this situation with the National Rifle Association may encourage politician to separate government, business and organizations.
Overall the combination of fraud, business risk and government can a serious situation. It is best to fully understand the business and personal risk involved in these situations before getting entangled in a situation that may be too difficult to get out of.