Case Study Title: Insider Threat Risk Analysis in a Financial Institution
Scenario Overview:
This fictional case study explores the intricate dynamics of insider threats within a leading financial institution, Apex Finance Corporation (AFC).   AFC is a global financial conglomerate with a substantial presence in investment banking, asset management, and retail banking, serving millions of clients worldwide. The institution is known for its commitment to security and client confidentiality.
Background:
AFC has recently experienced a series of data breaches and security incidents that have raised concerns among its senior management and stakeholders. These breaches have caused reputational damage and resulted in significant financial losses and regulatory scrutiny.
Organisational Culture:
AFC prides itself on cultivating a culture emphasising professionalism, innovation, and client-centricity. This culture has been a cornerstone of the institution's success for decades. Critical aspects of AFC's organisational culture include:
1.	Client Confidentiality: AFC emphasises safeguarding client information and maintaining the highest levels of confidentiality. Employees are trained rigorously on data protection and the importance of client trust.
2.	Innovation and Technology: As a leading financial institution, AFC encourages innovation and cutting-edge technology. Employees are encouraged to propose and implement innovative solutions to enhance efficiency and competitiveness.
3.	Meritocracy: AFC promotes a meritocratic environment where career advancement is based on performance and merit rather than seniority. This approach fosters healthy competition among employees to excel in their roles.
4.	Ethical Standards: Ethical behaviour and integrity are non-negotiable values at AFC. Employees are expected to adhere to a strict code of conduct, including zero tolerance for insider trading, fraud, or unethical practices.
5.	Diversity and Inclusion: AFC is committed to diversity and inclusion in its workforce. The organisation actively seeks to create an inclusive environment where employees from diverse backgrounds can thrive.
Management Culture:
A hierarchical structure with a strong focus on accountability and results characterises the management culture within AFC. Vital elements of AFC's management culture include:
1.	Leadership Accountability: Senior leaders, including the CEO and department heads, are held accountable for the performance and integrity of their respective divisions. This accountability extends to ensuring compliance with regulatory requirements.
2.	Risk Management: AFC's management places a high priority on risk management and has established risk committees to oversee various risk aspects, including credit, operational, and market risks. This emphasis on risk mitigation is crucial, given the nature of the financial industry.
3.	Communication and Transparency: Regular communication between management and employees is encouraged to ensure everyone is aligned with the organisation's goals and aware of any significant developments or changes.
4.	Performance-Based Compensation: Compensation and bonuses are tied to individual and team performance, emphasising the importance of achieving business objectives and maintaining profitability.
5.	Regulatory Compliance: Given the highly regulated nature of the financial industry, management is acutely aware of the importance of compliance with regulatory requirements. Regulatory affairs and compliance teams work closely with senior management to ensure all relevant laws and regulations are followed.
Challenges in the Organisational Culture:
While AFC has a solid and well-established organisational and management culture, recent insider threat incidents have raised concerns:
1.	Trust and Integrity: The insider trading allegations have shaken the confidence and integrity of the organisation. Employees are now warier of their colleagues and have the potential for unethical behaviour.
2.	Training Effectiveness: The effectiveness of AFC's training programs in instilling ethical behaviour and security awareness is under scrutiny, as two insider threat incidents (Brian Mitchell and Mark Roberts) have occurred despite the training.
3.	Communication Gaps: The hierarchical structure sometimes results in communication gaps between different levels of the organisation, which may hinder early detection and response to security incidents.
4.	Balancing Innovation with Security: AFC's culture of innovation needs to be balanced with stringent security measures to prevent data breaches and insider threats.
5.	Rebuilding Trust: The organisation now faces rebuilding trust with clients and regulators while maintaining a culture encouraging employees to report suspicious behaviour.
 
Timeline of recent incidents:
1. Insider Trading Allegations (6 months ago): AFC's proprietary trading system, known for its cutting-edge algorithms, is believed to have been compromised. The sudden and remarkably profitable trades made by one of AFC's traders, Brian Mitchell, raised suspicions. Subsequent investigations revealed that Mitchell secretly shared proprietary trading algorithms and confidential client information with a competitor. This case is pending regulatory action.
2. Unauthorised Data Access (4 months ago): A routine internal audit uncovered unusual activity within AFC's database systems. It was discovered that a junior database administrator, Lisa Chang, accessed sensitive customer information without authorisation. While no evidence of data leakage was found, the motive behind Chang's actions remains unclear.
* even though the motive was not found but there has to be a routine check to ensure no protocols were breached
3. Phishing Attack (2 months ago): AFC experienced a significant phishing attack that compromised several employee email accounts. While the attack was ultimately thwarted, it was discovered that the attacker had inside knowledge of the organisation's email system, suggesting a potential insider involvement.
4. Insider Trading Allegations (Present): Another instance of insider trading, this time involving Mark Roberts, a senior investment analyst at AFC, has come to light. Roberts made highly profitable trades in AFC's proprietary hedge fund shortly before the *public announcement of a significant acquisition, leading to allegations of insider trading.
* significant event 
 
Apex Finance Corporation (AFC) Organisational Chart
Board of Directors
•	Chairperson: [Jennifer Turner]
•	Members: [Richard Anderson,  Sandra Mitchen,  William Reynolds, Laura Carter]
Executive Leadership Team
•	CEO: [Jonathan Parker]
•	CFO: [Emily Foster]
•	CIO (Chief Information Officer): [Michael Bennett]
•	CISO (Chief Information Security Officer): [Olivia Simmons]
•	COO (Chief Operating Officer): [David Taylor]
Compliance and Legal
•	Chief Legal Officer: [Elizabeth Mitchell]
•	Chief Compliance Officer: [Thomas Lawson]
Investment Banking Division
•	Head of Investment Banking: [Matthew Sullivan]
o	Senior Investment Analysts: [various including Mark Roberts (alleged insider trader)]
o	Investment Analysts [Mark Roberts, Sarah Johnson]
o	Support Staff [various]
Asset Management Division
•	Head of Asset Management: [Rebecca Turner]
o	Portfolio Managers: [Daniel Johnson, Wendy Starling]
o	Investment Strategists: [various including Brian Mitchell (alleged insider trader)
o	Client Relations Team Manager [Victoria Adams]
Retail Banking Division
•	Head of Retail Banking: [Jamess Collins]
o	Branch Managers: [various]
o	Customer Service Representatives [various]
o	Loan Officers [various]
Information Technology and Security
•	Chief Information Security Officer (CISO): [Olivia Simmons]
o	Security Team [various]
o	Database Administrators [various including Lisa Chang]
o	IT Support Staff [various]
Risk Management
•	Chief Risk Officer: [Christopher Walker]
o	Risk Analysts [various]
o	Credit Risk Team [various]
o	Operational Risk Team [various]
Human Resources
•	Chief Human Resources Officer: [Patricia Smith]
o	Talent Acquisition [various]
o	Employee Training and Development [various]
o	Employee Relations [various]
Finance and Accounting
•	Chief Financial Officer (CFO): [Emily Foster]
o	Accounting Team [various]
o	Financial Analysts [various]
o	Budgeting and Planning [various]
Internal Audit
•	Chief Internal Auditor: [Stephanie Harris]
o	Internal Auditors [various]
Regulatory Affairs
•	Regulatory Affairs Manager: [Melissa Foster]
o	Regulatory Compliance Team [various]
Note:
•	The names of individuals in critical positions are fictional for the case study.
•	The chart represents a simplified structure; AFC would have more departments and employees.
 
Synthetic case study data for analysis:
1. Insider Trading Allegations (6 months ago - Brian Mitchell):
•	Employee Name: Brian Mitchell
•	Position: Trader
•	Date of Joining: January 2017
•	Alleged Insider Trading Dates: February 1st to April 15th (3 months)
•	Alleged Insider Trading Profit: £2.5 million
•	Communication Method with Competitor: Encrypted messaging app
•	Traded Securities: AFC proprietary hedge fund stocks
•	Competitor Company: Rival Financial Corp.
•	Regulatory Status: Investigation by FCA ongoing
2. Unauthorised Data Access (4 months ago - Lisa Chang):
•	Employee Name: Lisa Chang
•	Position: Junior Database Administrator
•	Date of Joining: May 2019
•	Unauthorized Data Access Period: June 5th to July 20th (1.5 months)
•	Data Accessed: Customer financial records and account information
•	Motive: Unknown
•	Detection Method: Routine internal audit
•	Actions Taken: Suspended pending internal investigation
3. Phishing Attack (2 months ago):
•	Incident Date: July 1st
•	Number of Employee Email Accounts Compromised: 12
•	Suspicious IP Address: 123.456.789.123
•	Detection Time: Within 24 hours
•	Attack Origin: Email attachment from an internal email address
•	Employee Suspected of Accidental Involvement: Sarah Johnson, Junior Analyst
•	Actions Taken: Enhanced email security protocols implemented
4. Insider Trading Allegations (Present - Mark Roberts):
•	Employee Name: Mark Roberts
•	Position: Senior Investment Analyst
•	Date of Joining: November 2015
•	Alleged Insider Trading Dates: August 10th to August 20th (10 days)
•	Alleged Insider Trading Profit: £1.8 million
•	Traded Securities: AFC proprietary hedge fund stocks
•	Investigation Status: Internal investigation ongoing; FCA notified
Additional Information:
•	AFC Total Assets: £50 billion
•	Employee Training Records: Annual security awareness training
•	Email Security Protocols: Two-factor authentication, regular phishing simulation training
•	Regulatory Oversight: FCA, FINRA, and international financial regulators
•	Incident Response Team: Led by the Chief Information Security Officer (CISO)
•	Previous Insider Threat Incidents: None on record before Brian Mitchell's case
What are the Project Risk Management Theories applied to this case study?