An association that fights corporate fraud will give guidance for companies utilizing blockchain technology.
The Committee of Sponsoring Organizations of the Treadway Commission or COSO, generally referred to as the Treadway Commission, will give direction to reinforce controls over employments of blockchain in financial services and supply chain management.
The Wall Street Journal first reported on the guidance, which is expected in the first quarter of 2020.
Founded in 1985, the Treadway Commission advises on risk management and corporate administration in the private sector. Its suggestions are opt-in and serve to offer “reasonable security.”
In a report on December 17, COSO stated that as organizations embrace new innovations such as blockchain, cloud computing, and artificial intelligence, cyber attackers “will take advantage of new vulnerabilities that allow information systems and controls to be exploited.”
The report cites hackers requesting ransoms paid in digital currency.
“[C]yber risks cannot be avoided, but such risks can be managed through careful design and implementation of appropriate responses and recovery processes,” COSO said.
COSO chairman Paul Sobel told the Journal it is a “very different view of the world” when organizations utilize distributed ledgers since control over the database is not internally maintained.