Category Archives: Accuracy

Indicted

A Tesla employee is indicted for creating fake documents to cover up a fake-payment scheme.  “Former Tesla Employee Is Indicted,” The Wall Street Journal, November 12, 2018 B5.

Companies have a lot of controls to prevent fraud by employees, and often these controls work.  Why are there more such controls to prevent financial fraud than to prevent violations of other company procedures, such as those related to document creation, retention, and storage?

One wonders whether, in the aggregate, companies lose more money through poor document management and control than they lose through financial fraud.  How would one conduct such a study?

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Filed under Accuracy, Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Protect assets, Records Management, Security, Third parties, Value, Vendors

It’s not free; it’s included

“When ‘Free Trading’ Isn’t Really Free,” The Wall Street Journal, November 10, 2018 B5.  You can avoid commissions when trading stock by using an app.  But if the price you pay or get paid for the stock is more or less, is the trade really free?  It depends on how much price improvement is involved.

Interesting study of how the benefits and cost savings on high frequency trading are divided among the various parties.  And who knows what.

Isn’t this type of “information imbalance” inherent in every transaction?  Do we know how much a tomato or an iPad costs the store that sells it?  Or whether the salesperson gets a commission?  How do we manage that imbalance?  Or do we just accept it, whatever it means?

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Filed under Access, Accuracy, Data quality, Definition, Information, Management, Use, Value

Cheaters

“Market Cheats Get Caught More Often,” The Wall Street Journal, November 1, 2018 B10.  Traders manipulating prices by spoofing real futures trades are getting caught and prosecuted for criminal violations.  Exchanges cooperating with enforcement authorities.

If accurate information is worth X, what is inaccurate information worth?  It depends, whether you are buying or selling based on it.

So, this is both Information (information includes both accurate and inaccurate information) and Governance (manipulating market trades with false information is a crime that the CFTC and DOJ prosecute).

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Filed under Accuracy, Compliance, Compliance (General), Controls, Corporation, Data quality, Definition, Duty, Duty of Care, Employees, Governance, Information, Oversight

Managing information

What does it say when you try too hard to “manage” the information that gets out?  Do you have the necessary “control” of that information?  When you try to “control” it, what does it say about you when the information gets out anyway?

This sounds like “the risk of selectively releasing information.”

“Turkey Slams Saudis Over Lack of Clarity About Slain Journalist’s Body,” The Wall Street Journal, November 1, 2018 A9.  Changing stories on the death of Jamal Khashoggi.

Apparently, there are international norms on what you need to say and how you need to say it, even if it information concerns events within a consulate.  Was disclosure legally required?  Maybe not, at least legally.  But when you do disclose, it’s a good idea to do so honestly.  Especially if someone else gets the information.

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Filed under Accuracy, Communications, Compliance, Controls, Culture, Duty, Governance, Government, Information, Internal controls, To report

What’s worse than a tweet?

“FBI Probes Tesla Over Production Figures,” The Wall Street Journal, October 27, 2018 A1.  FBI conducts a criminal investigation into whether Tesla knowingly overstated anticipated production figures and thereby misled investors.

What if Tesla knew at the time that it couldn’t and wouldn’t meet the production targets it was then continuously providing the market?  When does mere puffery become criminal?  What controls would you need to have to prevent this at your company?

Do you have them?  Are they enforced?

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Filed under Accuracy, Collect, Communicate, Communications, Compliance, Compliance, Compliance (General), Controls, Corporation, Culture, Data quality, Duty, Duty of Care, Governance, Internal controls, Investor relations, Management, Oversight, To report

It’s all information

This blog explores, from time to time, the outer reaches of the intersection(s) of Information, Governance, and Compliance.

Consider, for a moment, a fingerprint.  Not what you normally consider “information.”  And one seldom thinks of “managing” a fingerprint.  Who owns your fingerprint?  But consider the value of a fingerprint, and both the failure to “manage” or control where that fingerprint can be found and the ability to find that fingerprint and locate its owner.  How much information governance is involved in this process?

“Fingerprint Leads to Arrest Of Bomb Suspect in Florida,” The Wall Street Journal, October 27, 2018 A1.  Alleged mail bomber’s fingerprint in a package sent to a legislator leads to arrest of suspect.

Which leads me to the question,”What is there that isn’t information that is managed or controlled in our lives, or a least directly related to information that is managed?”  I struggle to find an example of something that isn’t information, or directly related (perhaps somewhat remotely) to information that is managed or controlled.

 

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Filed under Access, Accuracy, Analytics, Collect, Compliance, Controls, Data quality, Definition, Duty of Care, Governance, Information, Management, Oversight, Ownership, Records Management, Risk assessment, Use, Value

Non-disclosure non-agreement

“SEC Keeps Study On Speed-Bump Trading Under Wraps,” The Wall Street Journal, October 25, 2018 B11.  SEC has done a study of controls that slow down high-frequency traders, but hasn’t released that publicly.

The SEC is in charge of protecting the stock trading system.  As such, it watches over how quickly information moves within that ecosystem, and whether access is available to all at the same time.  But the SEC refuses to release the unredacted text of a study that it did on the impact on “controls” that limit the ability of high-speed traders to take unfair advantage of their access to information.

Curious as to why (and what) the government doesn’t want us to know.  Who oversees the government? (Hint: a free press is one of them).

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Filed under Access, Accuracy, Controls, Data quality, Duty, Governance, Government, Information, Interconnections, IT, Oversight, Technology, Third parties, To report, Value