EY tasks banks’ audit committee on increased cyber security, improved governance

With increased adoption of digitalisation and inclusion of third parties into companies privacy, stakeholders in the corporate space, especially board members and banks/company auditors, have been advised to heighten their sense of security and also improve their method of corporate governance in order not to become victims of cyber-crime.

Experts from Ernst & Young West Africa (EY), a global leader in assurance, tax, transaction and advisory services, gave the advice on Wednesday at a forum for banks’ audit committee members and other stakeholders, with the theme, “Innovating the audit to drive quality and value,” organised by EY in Lagos.

Dapo Adewole, technology advisory leader, EY West Africa, advised stakeholders in the corporate world to ensure adequate security of company’s profile. He mentioned that since the advent of digitalisation, companies had moved from the traditional mode of operations to the digital mode of operations and as each company adopted digitalisation, the risk of cyber-crime had increased.

He said there were basically 29 billion entry points penetrable by hackers and data get stolen in hundreds by the second, saying, “The cost of cyber crime in Nigeria cannot be accurately determined but according to survey respondents, Nigeria loses over N70 billion to cyber crime annually. Also, EY estimated the annual losses due to cyber crime to the Nigerian economy to about $200 million (N44bn).”

He stated that major emerging threats include increased social engineering risks and attacks, hacking (vulnerability exploits, penetration, low and slow attacks), internal threat, among many others. He advised participants to heighten their security in operating digitally, ensure tight security for company data as well as incorporating third parties into company matters.

Ben Afudego, advisory leader, EY West Africa, while speaking on corporate governance, said there were some key expectations of board members included loyalty, compliance with regulations, transparency, accountability, and integrity, among others. He said, “In addition to the prescribed regulatory responsibilities, leading Audit Committees must carve out time on the agenda for emerging, strategic and disruptive risks while also fostering an awareness of good corporate governance going forward.”

Jamiu Olakisan, partner and assurance leader at EY, who spoke on issues surrounding financial auditing, stated that it was important for companies to oblige with regulatory agencies in order to avoid administrative hitches in the organisation, adding that most auditors activities were limited in areas of financial reporting. He advised that there should be sufficient training for members of the company’s audit committee.

Anthony Oputa, head, financial services, EY West Africa, said the aim of the meeting with stakeholders was to address issues in organisation governance, security and financials, like cyber breach response, digital transformation, as well as audit committee’s oversight of financial reporting and effectiveness the bank’s priority areas, present compliance matters, reporting standards, and so on.