The Treadway Commission blockchain security guidance will be launched in 2020. The Committee of Sponsoring Organizations of the Treadway Commission (COSO), often called as the Treadway Commission, is a global organization that detects and fights corporate fraud. It announced on 27 December 2019 that it will issue Treadway Commission blockchain security guidance to help companies operating in the blockchain sector.
Setup in 1985, The Treadway Commission primarily deals with corporate governance advisory along with advisory in business risk management. They play an advisory role, and it is not mandatory to implement their guidelines. The organisation is dedicated to combating corporate fraud worldwide.
COSO issues periodical guidance that helps firms weed out the corrupt elements in the business realm. Its latest guidance on the blockchain will specifically cover firms operating in the financial sector and the supply chain management realm. It will not deal with cryptocurrencies specifically but rather from a conceptual point of view.
Treadway Commission blockchain security guidance will weaken corporate frauds
The COSO guidance will come in the first quarter of 2020. In December 2019, it laid down the importance of adopting new technologies carefully so that companies do not expose themselves to vulnerabilities. Innovative and disruptive technologies, like distributed ledger technology and blockchain, represent a sea of opportunities. Yet, they also signify that virtual mechanisms can be used for malicious intents.
Their report also mentions how hackers prefer their ransom in cryptocurrencies. The anonymous nature of cryptocurrencies makes it hard to track their activities. The risks associated with online activities must be avoided through innovative technological tools, ethical corporate governance and appropriate response measures. It also stressed on the need to build recovery mechanisms that help affected firms quickly rebound from any untoward incident.
COSO Chairman, Paul Sobel, says that in today’s fast-paced business realm, there is no in-house database control in the companies. So, the Treadway Commission blockchain security guidance must define how to tackle corporate fraud in real-time.
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