An firm that introduces corporate fraud may issue advice for companies using blockchain technology.
The Committee of Sponsoring Organizations of those Treadway Commission (COSO), commonly known as the Treadway Commission, will issue advice to strengthen controls over uses of blockchain in supply chain management and financial services.
The Wall Street Journal reported initially on the advice, which is expected from the first quarter of 2020.
The Treadway Commission was set in 1985 to advise on corporate governance and risk management from the private industry. Its guidelines are opt-in and function to supply “reasonable security.”
In a report Dec. 17, COSO explained that, as companies adopt new technologies such as blockchain, artificial intelligence, and cloud computing systems, cyber attackers “will take advantage of new vulnerabilities that allow information systems and controls to be exploited.”
The report cites hackers demanding ransoms paid in cryptocurrency.
“[C]yber dangers can’t be prevented, but these risks can be managed through careful design and execution of appropriate responses and retrieval procedures,” COSO writes.
Paul Sobel, COSO’s chairman, told the WSJ it is a “very different view of the world” when companies use dispersed ledgers, as control over the database is not maintained internally.
The company didn’t respond to a request for comment.
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