Description
Corporate Intelligence in Managing Risk & Integrity
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
Institutional Accreditation Registration Number/Intézmény akkreditációs lajstromszám: ALF-051
1
Syllabus revised: (02/06/2014), Preliminary version
CEU Business School
Central European University
Corporate Intelligence in Managing
Risk & Integrity
(2 credits)
(Semester, with exact dates)
Instructor: Nicholas Sarvari (See last page for bio sketch)
Class meets (day and time):
Classroom:
Office:
Tel:
Fax:
E-mail:
Office hours:
Academic Program Coordinator: Melinda Nagy ([email protected])
Student Services Mgrs : Aniko Juhasz ([email protected])
1. PREREQUISITIES
2. POLICY ON ADMITTING NON-MBA STUDENTS
It is the general policy of the Business School to admit students from other units of
CEU, provided that the prospective student meets the course perquisites stated above
[please add if relevant the Case Method course, typically offered twice during the AY,
since you cannot assume that non-MBAs will have had this core MBA course]
In the unlikely case that the number of non-MBAs registering for this course exceeds
the maximum number, priorities will be established on the basis of business and
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
Institutional Accreditation Registration Number/Intézmény akkreditációs lajstromszám: ALF-051
2
business related studies. Students with management experience, experience in
corporate compliance programs, or those with government experience may find this
course particularly useful.
3. REQUIRED TEXT & READINGS AND WHERE AVAILABLE
See Reading Breakdown in the Course Syllabus.
4. COURSE OBJECTIVES
5. MAIN TOPICS
• Include, business intelligence and its relevance and role in modern
business from the aspect of business management;
• the relevance of the intelligence cycle and its application to various forms
of risk, including risks to business integrity, fraud, corruption and
misconduct;
• the risk to corporations and management stemming from corporate
espionage;
• opportunities presented by metadata analytics for risk avoidance;
• and an overview of what a modern manager of an international enterprise
should know about the collection and analysis of strategic information.
6. INTENDED LEARNING OUTCOMES
Core Learning Area Learning Outcome
Intelligence and Analytics as Risk
Management Tools
Students will be able to understand how
corporate intelligence tools fit into a
business environment. They will
experience how information is assembled,
how analysis is conducted and expressed
to support strategic thinking.
Perception of Risk in Global
Business
Students will gain an ability to understand
how complex risk environments can be
and will learn how intelligence used to
understand to threats.
Relevance of Cultural Sensitivity
in Business
Students will increase their understanding
of the role of culture in business and how
diversity is a factor in changing
perceptions of risk. Particular emphasis is
placed on corruption and varying trends
and patterns in criminal activities, fraud,
and misconduct.
Crisis Recognition & Response Students will experience how actionable
intelligence provides opportunity to
preempt threats as well as the expected and
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
Institutional Accreditation Registration Number/Intézmény akkreditációs lajstromszám: ALF-051
3
acceptable responses.
Factors Impacting Integrity Students will be introduced to the
responsibilities placed on leadership by a
rapidly evolving regulatory environment,
including the US Foreign Corrupt
Practices Act (FCPA), the UK Anti-
bribery legislation, among others that
directly and indirectly impact how
information may be gathered, used and
retained.
Corporate Social Responsibility Students will be able to assess how
intelligence activities provide inputs to
making ethical and sound business
decisions in the context of regulatory and
legislative expectations.
Management Knowledge and
Skills
Students will be able to decide on the
value of intelligence, how information in a
given organization should be collected,
and to whom and how it might be
presented.
7. HOW THE CLASS SESSIONS WILL BE CONDUCTED
Classes will be divided into two parts: A lecture presentation will be made to
deliver concepts and information regarding the week’s topic and will be followed
by an interactive seminar and case discussion. As relevant reading materials on
this topic serve as a strong background to understanding the methods of business
intelligence, the lectures and discussions will be critical in passing on the hands on
approach to developing business intelligence knowledge and skills. In some
cases, guest speakers will address the group to add in hands on experience.
8. POLICY ON THE AVAILABILITY OF LECTURE NOTES
Diagrams and charts as well as PowerPoint or Prezi will be used to enhance
lecture presentations and discussion sessions. These will be made available as
PDF on Moodle.
9. ASSIGNMENTS
Two short assignments (5-7 written pages) will be required of the students; these are
essay style essays based on the topics covered by the course and will together
represent 30% of the final grade. The purpose of the assignments to provide an
opportunity for students to consolidate topics covered and to provide an opportunity
to apply some of this knowledge in a written case study form.
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10. POLICY ON CLASS ATTENDANCE
Regular and punctual attendance at every class session is a requirement of all degree
programs at CEU Business School. Each class covers material not found in the
readings. Furthermore, participation in class discussions is an important part of the
learning experience for all students as well as a factor in grading. Any absence may
affect your grade. If illness or another unusual circumstance requires missing a class,
please do your best to inform me (or, if I cannot be reached, the Program Coordinator)
in advance. A grade of “AF” (Administrative Fail) may be assigned for failure to
regularly attend a course, to drop the course in time, or to complete requirements on
time. This is a general CEU regulation that the Business School also follows. The
“AF” grade earns no credit, 0 points, and affects your GPA in the same way as a
regular “F” grade.
11. CLASS PARTICIPATION
As the course is delivered in a two month period, the emphasis on participation and
interaction with the class is higher and more relevant than written assignments.
Students will be given every opportunity to contribute and participate in discussions
through interactive lectures, discussions, and group breakout sessions.
12. GRADING
Lectures topics will be followed by discussions and, where possible, by introducing
guest speakers whom have close proximity to the topics being discussed. Participation
is an important aspect of this course as the problems and challenges discussed around
this topic will rely on contribution of students in discussions and course work.
Two Small Written Assignments (15% Each) 30%
Class Participation 30%
Final Exam 40%
Total Grade 100%
13. ACADEMIC INTEGRITY
The Business School expects all students to adhere to the fundamental principles of
academic integrity in any and all behaviors associated with their course work and
otherwise, as stated in the CEU Honor Code (see Student Handbook). Attempted
cheating of all forms is treated extremely seriously and can result in dismissal from
the School and University.
14. LIBRARY AND INTERNET LIBRARY RESOURCES
The CEU Library, at Nador St. 9, has the largest collection of English-language
materials in the social sciences and humanities in Central Europe: 180,000
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monographs and 30,000 volumes of periodicals, working papers, dissertations and so
on. CEU faculty and students have access to 30,000 electronic journals, searchable via
the Journal Search tool on the library catalogue page (http://goya.ceu.hu/; the icon is
in the upper right corner.
CEU Business School core faculty, students and staff are automatically eligible for
full membership in the Library, after registering at the Circulation Desk. (To use the
Library, adjunct faculty should first obtain a pass at the B School Academic Office
Rm 311.)
The CEU Library has 5,000 business-related titles, supplemented by leading
electronic databases, accessible throughhttp://www.library.ceu.hu/databases.html
(Click on the icons and then click on the tag next to “connect to”.) The Ebsco Host
Business Source Complete contains 3,700 periodicals in full text, many monographs,
some case studies, and videos of the Harvard Faculty Seminar Series. Emerald
Management Journals collection has a portfolio of 175 journals in management,
marketing, econ and finance.
New business databases include OneSource, the most comprehensive company &
executive information. Global Market Information Database has comprehensive data
and reports across industries, countries and type of consumers. Thomson One Banker
provides data on internationally quoted companies, international stock exchange
indices, private equity, and financial deals. Science Direct is an extensive full-text
database covering authoritative titles from the core scientific literature. The Company
Dossier in Lexis Nexis Academic allows users to browse in-depth company profiles
and industry reports. Core statistical databases include IFS, GFS Online, OECD Main
Economic Indicators, National Accounts Statistics, and Tax Statistics. Econlit at the
CSA/Proquest platform provides bibliographic coverage of a wide range of
economics-related literature.
Business dailies and weeklies can be accessed through the library. Business Eastern
Europe by EIU is a weekly briefing on operating a business in Eastern Europe.
Country Reports also by EIU provide in-depth economic, political and business
analysis and short-term market outlooks. Electronic versions of The WSJ are in
PressDisplay. The Economist is included by EbscoHost. For The Fin. Times online,
see Journal Search.
News on economic and social developments in the Caucasus and Central Asia can be
downloaded directly (not via the CEU Library):http://www.icegec.hu/eng/index.htm.
Help with Case Studies and Research Projects
Available on CEU Library reserve is a reference work that students preparing case-
study assignments or undertaking individual or team research projects should find
helpful, Business Case Studies: Preparation, Teaching and Learning (compiled, with
contributions, by Susan Harmeling, Lead Case Writer, Harvard Business School, and
Paul Marer, Professor, CEU Business School). This work, whose reference code is
CM-GSB, can be found on the shelf marked Business School Readers, right behind
the Circulation Desk, at the CEU Library on Nador utca.
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The VPN access makes it easy to reach from outside of the CEU network the full
version of UIS and all CEU Library databases and journals. (Visithttps://vpn.ceu.hu,
accept the security-certificate, and enter: User name: ceubs Password:
Ceubusi987. The password is case sensitive, and to enter it, only the virtual keyboard
appearing on the screen can be used. Once logged in, the "built in" browser can be
used to access the respective sites: UIS:https://infosys.ceu.hu.
15. COURSE OUTLINE AND SESSION ASSIGNMENTS
This course is designed to introduce business students to ‘corporate intelligence’ as a
strategic tool in modern global business. For the first time in business, we are
experiencing the evolution of regulatory environments mandating that companies
collect and retain information related to their activities – in effect they are making the
gathering of intelligence a legal requirement. At the same time, the practical and
regulatory risks of collecting and storing vast amounts of data and the risks posed by
data loss are together creating complex business dilemmas. Future business leaders
will have to grapple with an increasingly complex global marketplace at a point in
time when success rests almost entirely on the ability to tap into timely and accurate
information. Barriers to this information vary from business practice and language to
cultural differences, but are also complicated by increasingly efficacious legislation
that demands enforcement and sanction of objectionable behavior across national
boundaries.
Intelligence is more than a tool; business leaders that develop intelligence skills
sharpen their ability to recognize opportunity as well as grapple with risk. This course
considers how the global nature of business, cultures and regulation complicates
obtaining information. We look at intelligence gathering methods, source
development, and the process of analytics, the roles of lawyers/accountants and
investigators as well as consider the responsibility of management for engaging the
right tools and recording their activities.
Session Assignments
Each session is divided into two segments, providing time to both deliver the
information the course needs to convey and to allow for interaction, guest speakers,
and case problem solving where relevant and possible.
Session 1: Espionage vs. Intelligence: Myth vs. Reality
1.1. This session will introduce the business student to the world of strategic intelligence. We will
consider historical roots, its practical and moral relevance to society and business as well as look at
the application of intelligence tools in modern corporations. This session aims to eliminate
popular misconceptions and distinguish between government and private sector intelligence as
well as distinguish between the various forms business intelligence takes. We will consider how
intensifying corporate risk has elevated the vitality of intelligence and created new ways for
contemporary business leaders to manage risk and reward.
1.2. The session will look at case examples of where business intelligence has played a role in shaping
business decisions. We will look into how corporations are gathering and processing information
to manage risk as well as form strategy. Students will be introduced to facets of the Intelligence
Cycle and consider how businesses adopt and apply these tools to ward of risks to business. Short
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case examples will be used to bring students into an understanding of how business problems are
approached by the intelligence professional and provide examples of where it has gone wrong.
Required Readings:
Richard Eells and Peter Nehemkis. “Corporate Intelligence and Espionage: A Blueprint for Executive
Decision Making.” New York: Macmillan Publishing, 1984, 3-63.
Case Study examples in: Javers, Eamon. “Broker, Trader, Lawyer, Spy: The Secret World of Corporate
Espionage.” New York: Harper Collins Press, 2010. Chapter Six, “The Chocolate War”
Crane, Andrew. “In the company of spies: when competitive intelligence gathering becomes industrial
espionage” in Business Horizons. 2005: Vol. 48: 233-240.
Recommended
Gessner, Guy, and Richard A. Scott. "Using Business Intelligence Tools to Help Manage Costs and
Effectiveness of Business-to-Business Inside-Sales Programs." Information Systems Management 26,
no. 2 (Spring 2009): 199-208
Session 2: Intelligence as a Response to Risk: Tools, Tradecraft and & Analytics
2.1 Business intelligence tools offer business leaders the ability to see opportunity and threat more
clearly. Whether collecting data to predict the market trends or to distinguish the risk of
aggressive competitors attacking the interests of a business, intelligence is information gathered
with purpose and that through analysis has relevance to a consumer. This session will look at the
application of gathering and analytical techniques in the context a manager’s needs through case
examples.
2.2 The latter session consider source development, analytical techniques such as graphical
representation, the use of deep data analysis, and human source contributions. Students will be
asked to consider business problems and will be taken through the basic steps of identifying where
intelligence techniques are useful, how sources are established, and how analytical techniques are
applied in the distilling of information and how information should be presented.
Required Reading
Heuer, Richards, J. and Randolph H. Pherson. “Structured Analytical Techniques for Intelligence
Analysis.” Washington D.C., CQ Press, 2011.
Tackett, James A. and Fran Wolf. “Link Analysis for Fraud Detection” in Journal of Corporate
Accounting & Finance, Wiley, May 2012; 23(4): 7-13.
Session 3: The Role of Intelligence in Business: Growth, Opportunity &
Transactions
3.1 Due diligence in this session is highlighted as an important aspect of business transactions that
most managers will at some point face. Corporate intelligence techniques enhance this process.
We will consider basic steps and considerations of due diligence through cases and examples and
will consider what questions are posed, what the role of advisors are, what purpose data rooms
play and what opportunities there are intelligence to support the advancement – or defense – of
business interests.
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3.2 In the latter session, students will be exposed to the cross border complexities and the impact of
cultural differences when seeking out information to support business decisions involving the
setting up of business operations and international transactions. Guest speakers are being planned
to provide shared experience from the legal, audit, and investment and sector perspectives.
Required Reading
Walker, Matthew. “Should Intelligence Support to Private Industry be Enhanced?” in Georgetown
Journal of International Affairs. Spring 2011, 8-16.
Harding, David and Ted Rouse. “Human Due Diligence” in Harvard Business Review, April 2007:
124-131.
Goleman, Daniel. “The Focused Leader How effective executives direct their own—and their
organizations’— attention.” In Harvard Business Review, December 2013: 51-60.
Session 4:Mitigation of Risk from Corruption and Misconduct in Global
Business
4.1 Anti-bribery legislation in a multitude of countries (e.g., FCPA, UK Anti-Bribery Act) and data
protection laws are now in place to curb the spread corruption and protect against the abuse of
information. Even the strictest compliance policies and companies that claim resilience against
these types of risks find themselves from time to time in situations where the actions of a manager
may inadvertently and seriously impact upon the integrity of a company. This session looks at the
responsibilities, contradictions in legislation and the role of management.
4.2 In the latter section, students will consider how corporate intelligence techniques may effectively
enhance corporate policies and defend against the risks from corruption and misconduct in the
global marketplace. Considerations will include the challenge of overcoming cultural differences,
business practices, and conflicts with local legislation in the context of compliance requirements
through case examples and potentially a guest speaker.
Required Reading:
Ledeneva, Alena V. Teneoi “Barter: Shadow Barter, Barter Chains, and Nonmonetary Markets” in How Russia
Really Works: The Informal Practices that Shaped Post-Soviet Politics and Business. New York: Cornell
University Press, 2006. Pages 115-143.
Dixon G, G. Goesswein and O. Hohmann “Anti-bribery Laws: Some Comparisons between Germany and the UK”
in International Construction Law Review, January 2013; 30(1):54.
Wagner, Stephen and Lee Dittmar. “The Unexpected Benefits of Sarbanes-Oxley” in Harvard Business Review,
April 2006: 133-140
Heywood P, Meyer-Sahling J. Danger Zones of Corruption: How Management of the Ministerial Bureaucracy
affects Corruption Risks in Poland. Public Administration And Development [serial online]. n.d.; 33(3):191-204.
Serju D, Marioara A. SOME CONSIDERATIONS REGARDING THE MANIFESTATION OF FISCAL FRAUD
IN ROMANIA. Annals of The University of Oradea, Economic Science Series [serial online]. July 2013;
22(1):631-639.
Tušek b, klikovac A. “Corporate governance practices in fraud prevention and detection - empirical evidence from
Croatia” in International Journal Of Management Cases” [serial online]. September 2012; 14(3): 59-71.
Farooq K, Brooks G. Arab fraud and corruption professionals' views in the Arabian Gulf. Journal Of Financial
Crime [serial online]. June 2013; 20(3):338-347.
Berglund, Christofer, Michael Jonsson, Christian Nils Larson & Elias Götz. “Combating Money Laundering in
Eurasia: Lessons from Kyrgyzstan and Georgia” in China and Eurasia Forum Quarterly, Volume 6, No. 3 (2008) p.
21-44.
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Session 5: Responsibility of Management: The Pitfalls of Personal Liability
5.1 In this session we consider the responsibilities of management and offer insights into how
intelligence tools alongside compliance policies enhance the workings of a management board.
We look at the implications the regulatory environment makes on the role of management in
making business decisions and the role and opportunity of the corporate intelligence function in
the mitigation of risk to the integrity of a corporation. We will consider cases to look at
implications of management actions and subsequent liability.
5.2 In the latter session, we will look at the impact of decisions and how personal liability on the part
of management is changing. We consider the importance of archived information, legal advice and
the role of insurance in the day to day function of a senior manager.
Required Reading:
Rupp, John P. and Alexander Melia. “The Bribery Act of 2010: implications for global business and individual
directors.” in Serious Economic Crime: a boardroom guide to prevention and compliance. Chapter 10., Harry
Travers ed. 2011 (ibook).
MALIK R, ROSH R. Are You Covered? Insurance Considerations for Hedge Fund Managers and Directors.
Journal Of Taxation & Regulation Of Financial Institutions [serial online]. November 2012; 26(2):29-38
Pollock J. A Close Eye on Business Partners. Internal Auditor [serial online]. December 2012; 69(6): 43-47.
Session 6: The Security of Business
6.1 The digital age has elevated corporate espionage to be one of the most serious risks facing
businesses globally today. Yet the security function of defending against these risks is often missed
and managers and employees are often oblivious to the presence of these threats. In this session we
will look at cases and examples where businesses have suffered greatly because of the deliberate
theft of information in an effort to raise the future manager’s attention to the importance of
defense.
6.2 In the latter session, we consider how corporate intelligence enhances the security function of a
company and highlights how collecting information on the risk environment is critical in the
defense of the company’s interests. Variations in cultural, legislative complexities and more
traditional perspectives on the role of security can lead management to miss opportunities to
mitigate risk – we will in this session also explore the challenges facing a corporation in an age
where compliance regulations can collide with, for example, regulations concerning the protection
of personal data. We will consider how security in a corporation might be structured and look at
the challenges this involves.
Required Reading:
Petersen, KL., “The Corporate Security Professional: A Hybrid Agent Between Corporate and National Security”
in Security Journal, 2013, 26:3, 222-235.
Shelley L. The Diverse Facilitators of Counterfeiting: A Regional Perspective. Journal Of International Affairs,
Winter 2012; 66(1):19-37.
Javers, Emon. “Secrets and Lies: The Rise of Corporate Espionage in a Global Economy”
Recommended Reading:
Ruskin, Gary. Spooky Business: Corporate Espionage Against Nonprofit Organizations, Centre for Corporate
Policy (www.http://www.corporatepolicy.org/category/issues/corporate-espionage/) , November, 2013.
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
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Session 7: Metadata and the Future of Intelligence in Business
7.1 Companies create and retain stupefying amounts of data about their employees, processes,
customers, and policies as a matter of course. They harness information about their risks and
opportunities as well as efficiencies and failures. However, we are only now beginning to learn
about how to really interrogate this information and create new perspectives on what metadata can
mean for the future of a company’s business and even to its integrity. We will look at how
intelligence is now being applied to extracting strategically valuable information through
advancements in technology.
7.2 During the latter session, we will consider some of these concepts now being raised by the rise of
metadata and the opportunities open for companies to develop mechanisms of intelligence
gathering that not only predict what their customers will want in the future, but also guard from the
disastrous impacts of fraud, criminality and misconduct. We look the risk posed by the retention
of data, consider legal and ethical challenges, as well as look at the power of forensic detection
capabilities, extraction methods and the rise of predictability and prevention of threats on corporate
integrity through cases and potentially a guest speaker.
Required Reading:
Ross, Jeanne W., Cynthia M. Beath, and Anne Quaadgras. You May Not Need Big Data After All:
Learn how lots of little data can inform everyday decision making.” Harvard Business Review,
December 2013: 90-98.
Chan, Marjorie. Corporate Espionage and Workplace Trust/Distrust in Journal of Business Ethics 42:
45-58, 2003.
Hiltbrand T. “Social Intelligence: The Next Generation of Business Intelligence.” in Business
Intelligence Journal [serial online]. September 2010; 15(3): 7-13.
Session 8: Response to Misconduct
8.1 When an incident emerges that suggests company officers may have responsibility for misconduct
in a company, it is critical that strategic steps be taken to mitigate further damage to the firm’s
integrity and the reputation of its partners. It is equally as important to consider longer term
implications, including any potential costly penalties. Sarbanes Oxley and Dodd Frank, for
example, have tightened reporting requirements, but have also exposed companies to
complications stemming from the cultural gradients in which they operate. With whistle blowers
on the rise, we look at how companies have responded to perceived threats through cases
examples.
8.2 Students in this session will look at the potential of intelligence collection in focusing a company’s
policies around avoiding situations of misconduct as well as consider the basic guidelines of
internal investigations, securing evidence and using external help. Students will review case
studies of misconduct and consider the outcomes of those cases before being broken into work
groups to work through cases through teamwork and brainstorming. Students will assess where
intelligence could be useful and where other management actions could be utilized to mitigate the
threat posed by the misconduct revealed.
Required Reading:
Gold A, Knechel W, Wallage P. The Effect of the Strictness of Consultation Requirements on Fraud Consultation.
Accounting Review [serial online]. May 2012;87(3):925-949
McNeil, Andi. “What's Your Fraud IQ?” in Journal Of Accountancy, August 2013;216(2):26-30.
NICOL?ESCU, EUGEN. "Internal Auditors' Role In Detecting Fraud." In Contemporary Readings In Law &
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Social Justice 5.1 (2013): 106-111.
16. BRIEF BIO OF THE INSTRUCTOR
Nicholas Sarvari, BA (York University), MA (Carleton University) has been working with
the countries of Central & Eastern Europe and the Former Soviet Union since the
early 1990s. He currently leads CNS Risk, an international business consulting
company specializing in corporate intelligence, investigative and business advice to
corporations.
doc_333011125.pdf
Corporate Intelligence in Managing Risk & Integrity
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
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1
Syllabus revised: (02/06/2014), Preliminary version
CEU Business School
Central European University
Corporate Intelligence in Managing
Risk & Integrity
(2 credits)
(Semester, with exact dates)
Instructor: Nicholas Sarvari (See last page for bio sketch)
Class meets (day and time):
Classroom:
Office:
Tel:
Fax:
E-mail:
Office hours:
Academic Program Coordinator: Melinda Nagy ([email protected])
Student Services Mgrs : Aniko Juhasz ([email protected])
1. PREREQUISITIES
2. POLICY ON ADMITTING NON-MBA STUDENTS
It is the general policy of the Business School to admit students from other units of
CEU, provided that the prospective student meets the course perquisites stated above
[please add if relevant the Case Method course, typically offered twice during the AY,
since you cannot assume that non-MBAs will have had this core MBA course]
In the unlikely case that the number of non-MBAs registering for this course exceeds
the maximum number, priorities will be established on the basis of business and
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
Institutional Accreditation Registration Number/Intézmény akkreditációs lajstromszám: ALF-051
2
business related studies. Students with management experience, experience in
corporate compliance programs, or those with government experience may find this
course particularly useful.
3. REQUIRED TEXT & READINGS AND WHERE AVAILABLE
See Reading Breakdown in the Course Syllabus.
4. COURSE OBJECTIVES
5. MAIN TOPICS
• Include, business intelligence and its relevance and role in modern
business from the aspect of business management;
• the relevance of the intelligence cycle and its application to various forms
of risk, including risks to business integrity, fraud, corruption and
misconduct;
• the risk to corporations and management stemming from corporate
espionage;
• opportunities presented by metadata analytics for risk avoidance;
• and an overview of what a modern manager of an international enterprise
should know about the collection and analysis of strategic information.
6. INTENDED LEARNING OUTCOMES
Core Learning Area Learning Outcome
Intelligence and Analytics as Risk
Management Tools
Students will be able to understand how
corporate intelligence tools fit into a
business environment. They will
experience how information is assembled,
how analysis is conducted and expressed
to support strategic thinking.
Perception of Risk in Global
Business
Students will gain an ability to understand
how complex risk environments can be
and will learn how intelligence used to
understand to threats.
Relevance of Cultural Sensitivity
in Business
Students will increase their understanding
of the role of culture in business and how
diversity is a factor in changing
perceptions of risk. Particular emphasis is
placed on corruption and varying trends
and patterns in criminal activities, fraud,
and misconduct.
Crisis Recognition & Response Students will experience how actionable
intelligence provides opportunity to
preempt threats as well as the expected and
Adult Education Registration Number/Feln?ttképzési nyilvántartási szám: 00871-2010
Institutional Accreditation Registration Number/Intézmény akkreditációs lajstromszám: ALF-051
3
acceptable responses.
Factors Impacting Integrity Students will be introduced to the
responsibilities placed on leadership by a
rapidly evolving regulatory environment,
including the US Foreign Corrupt
Practices Act (FCPA), the UK Anti-
bribery legislation, among others that
directly and indirectly impact how
information may be gathered, used and
retained.
Corporate Social Responsibility Students will be able to assess how
intelligence activities provide inputs to
making ethical and sound business
decisions in the context of regulatory and
legislative expectations.
Management Knowledge and
Skills
Students will be able to decide on the
value of intelligence, how information in a
given organization should be collected,
and to whom and how it might be
presented.
7. HOW THE CLASS SESSIONS WILL BE CONDUCTED
Classes will be divided into two parts: A lecture presentation will be made to
deliver concepts and information regarding the week’s topic and will be followed
by an interactive seminar and case discussion. As relevant reading materials on
this topic serve as a strong background to understanding the methods of business
intelligence, the lectures and discussions will be critical in passing on the hands on
approach to developing business intelligence knowledge and skills. In some
cases, guest speakers will address the group to add in hands on experience.
8. POLICY ON THE AVAILABILITY OF LECTURE NOTES
Diagrams and charts as well as PowerPoint or Prezi will be used to enhance
lecture presentations and discussion sessions. These will be made available as
PDF on Moodle.
9. ASSIGNMENTS
Two short assignments (5-7 written pages) will be required of the students; these are
essay style essays based on the topics covered by the course and will together
represent 30% of the final grade. The purpose of the assignments to provide an
opportunity for students to consolidate topics covered and to provide an opportunity
to apply some of this knowledge in a written case study form.
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10. POLICY ON CLASS ATTENDANCE
Regular and punctual attendance at every class session is a requirement of all degree
programs at CEU Business School. Each class covers material not found in the
readings. Furthermore, participation in class discussions is an important part of the
learning experience for all students as well as a factor in grading. Any absence may
affect your grade. If illness or another unusual circumstance requires missing a class,
please do your best to inform me (or, if I cannot be reached, the Program Coordinator)
in advance. A grade of “AF” (Administrative Fail) may be assigned for failure to
regularly attend a course, to drop the course in time, or to complete requirements on
time. This is a general CEU regulation that the Business School also follows. The
“AF” grade earns no credit, 0 points, and affects your GPA in the same way as a
regular “F” grade.
11. CLASS PARTICIPATION
As the course is delivered in a two month period, the emphasis on participation and
interaction with the class is higher and more relevant than written assignments.
Students will be given every opportunity to contribute and participate in discussions
through interactive lectures, discussions, and group breakout sessions.
12. GRADING
Lectures topics will be followed by discussions and, where possible, by introducing
guest speakers whom have close proximity to the topics being discussed. Participation
is an important aspect of this course as the problems and challenges discussed around
this topic will rely on contribution of students in discussions and course work.
Two Small Written Assignments (15% Each) 30%
Class Participation 30%
Final Exam 40%
Total Grade 100%
13. ACADEMIC INTEGRITY
The Business School expects all students to adhere to the fundamental principles of
academic integrity in any and all behaviors associated with their course work and
otherwise, as stated in the CEU Honor Code (see Student Handbook). Attempted
cheating of all forms is treated extremely seriously and can result in dismissal from
the School and University.
14. LIBRARY AND INTERNET LIBRARY RESOURCES
The CEU Library, at Nador St. 9, has the largest collection of English-language
materials in the social sciences and humanities in Central Europe: 180,000
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monographs and 30,000 volumes of periodicals, working papers, dissertations and so
on. CEU faculty and students have access to 30,000 electronic journals, searchable via
the Journal Search tool on the library catalogue page (http://goya.ceu.hu/; the icon is
in the upper right corner.
CEU Business School core faculty, students and staff are automatically eligible for
full membership in the Library, after registering at the Circulation Desk. (To use the
Library, adjunct faculty should first obtain a pass at the B School Academic Office
Rm 311.)
The CEU Library has 5,000 business-related titles, supplemented by leading
electronic databases, accessible throughhttp://www.library.ceu.hu/databases.html
(Click on the icons and then click on the tag next to “connect to”.) The Ebsco Host
Business Source Complete contains 3,700 periodicals in full text, many monographs,
some case studies, and videos of the Harvard Faculty Seminar Series. Emerald
Management Journals collection has a portfolio of 175 journals in management,
marketing, econ and finance.
New business databases include OneSource, the most comprehensive company &
executive information. Global Market Information Database has comprehensive data
and reports across industries, countries and type of consumers. Thomson One Banker
provides data on internationally quoted companies, international stock exchange
indices, private equity, and financial deals. Science Direct is an extensive full-text
database covering authoritative titles from the core scientific literature. The Company
Dossier in Lexis Nexis Academic allows users to browse in-depth company profiles
and industry reports. Core statistical databases include IFS, GFS Online, OECD Main
Economic Indicators, National Accounts Statistics, and Tax Statistics. Econlit at the
CSA/Proquest platform provides bibliographic coverage of a wide range of
economics-related literature.
Business dailies and weeklies can be accessed through the library. Business Eastern
Europe by EIU is a weekly briefing on operating a business in Eastern Europe.
Country Reports also by EIU provide in-depth economic, political and business
analysis and short-term market outlooks. Electronic versions of The WSJ are in
PressDisplay. The Economist is included by EbscoHost. For The Fin. Times online,
see Journal Search.
News on economic and social developments in the Caucasus and Central Asia can be
downloaded directly (not via the CEU Library):http://www.icegec.hu/eng/index.htm.
Help with Case Studies and Research Projects
Available on CEU Library reserve is a reference work that students preparing case-
study assignments or undertaking individual or team research projects should find
helpful, Business Case Studies: Preparation, Teaching and Learning (compiled, with
contributions, by Susan Harmeling, Lead Case Writer, Harvard Business School, and
Paul Marer, Professor, CEU Business School). This work, whose reference code is
CM-GSB, can be found on the shelf marked Business School Readers, right behind
the Circulation Desk, at the CEU Library on Nador utca.
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The VPN access makes it easy to reach from outside of the CEU network the full
version of UIS and all CEU Library databases and journals. (Visithttps://vpn.ceu.hu,
accept the security-certificate, and enter: User name: ceubs Password:
Ceubusi987. The password is case sensitive, and to enter it, only the virtual keyboard
appearing on the screen can be used. Once logged in, the "built in" browser can be
used to access the respective sites: UIS:https://infosys.ceu.hu.
15. COURSE OUTLINE AND SESSION ASSIGNMENTS
This course is designed to introduce business students to ‘corporate intelligence’ as a
strategic tool in modern global business. For the first time in business, we are
experiencing the evolution of regulatory environments mandating that companies
collect and retain information related to their activities – in effect they are making the
gathering of intelligence a legal requirement. At the same time, the practical and
regulatory risks of collecting and storing vast amounts of data and the risks posed by
data loss are together creating complex business dilemmas. Future business leaders
will have to grapple with an increasingly complex global marketplace at a point in
time when success rests almost entirely on the ability to tap into timely and accurate
information. Barriers to this information vary from business practice and language to
cultural differences, but are also complicated by increasingly efficacious legislation
that demands enforcement and sanction of objectionable behavior across national
boundaries.
Intelligence is more than a tool; business leaders that develop intelligence skills
sharpen their ability to recognize opportunity as well as grapple with risk. This course
considers how the global nature of business, cultures and regulation complicates
obtaining information. We look at intelligence gathering methods, source
development, and the process of analytics, the roles of lawyers/accountants and
investigators as well as consider the responsibility of management for engaging the
right tools and recording their activities.
Session Assignments
Each session is divided into two segments, providing time to both deliver the
information the course needs to convey and to allow for interaction, guest speakers,
and case problem solving where relevant and possible.
Session 1: Espionage vs. Intelligence: Myth vs. Reality
1.1. This session will introduce the business student to the world of strategic intelligence. We will
consider historical roots, its practical and moral relevance to society and business as well as look at
the application of intelligence tools in modern corporations. This session aims to eliminate
popular misconceptions and distinguish between government and private sector intelligence as
well as distinguish between the various forms business intelligence takes. We will consider how
intensifying corporate risk has elevated the vitality of intelligence and created new ways for
contemporary business leaders to manage risk and reward.
1.2. The session will look at case examples of where business intelligence has played a role in shaping
business decisions. We will look into how corporations are gathering and processing information
to manage risk as well as form strategy. Students will be introduced to facets of the Intelligence
Cycle and consider how businesses adopt and apply these tools to ward of risks to business. Short
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case examples will be used to bring students into an understanding of how business problems are
approached by the intelligence professional and provide examples of where it has gone wrong.
Required Readings:
Richard Eells and Peter Nehemkis. “Corporate Intelligence and Espionage: A Blueprint for Executive
Decision Making.” New York: Macmillan Publishing, 1984, 3-63.
Case Study examples in: Javers, Eamon. “Broker, Trader, Lawyer, Spy: The Secret World of Corporate
Espionage.” New York: Harper Collins Press, 2010. Chapter Six, “The Chocolate War”
Crane, Andrew. “In the company of spies: when competitive intelligence gathering becomes industrial
espionage” in Business Horizons. 2005: Vol. 48: 233-240.
Recommended
Gessner, Guy, and Richard A. Scott. "Using Business Intelligence Tools to Help Manage Costs and
Effectiveness of Business-to-Business Inside-Sales Programs." Information Systems Management 26,
no. 2 (Spring 2009): 199-208
Session 2: Intelligence as a Response to Risk: Tools, Tradecraft and & Analytics
2.1 Business intelligence tools offer business leaders the ability to see opportunity and threat more
clearly. Whether collecting data to predict the market trends or to distinguish the risk of
aggressive competitors attacking the interests of a business, intelligence is information gathered
with purpose and that through analysis has relevance to a consumer. This session will look at the
application of gathering and analytical techniques in the context a manager’s needs through case
examples.
2.2 The latter session consider source development, analytical techniques such as graphical
representation, the use of deep data analysis, and human source contributions. Students will be
asked to consider business problems and will be taken through the basic steps of identifying where
intelligence techniques are useful, how sources are established, and how analytical techniques are
applied in the distilling of information and how information should be presented.
Required Reading
Heuer, Richards, J. and Randolph H. Pherson. “Structured Analytical Techniques for Intelligence
Analysis.” Washington D.C., CQ Press, 2011.
Tackett, James A. and Fran Wolf. “Link Analysis for Fraud Detection” in Journal of Corporate
Accounting & Finance, Wiley, May 2012; 23(4): 7-13.
Session 3: The Role of Intelligence in Business: Growth, Opportunity &
Transactions
3.1 Due diligence in this session is highlighted as an important aspect of business transactions that
most managers will at some point face. Corporate intelligence techniques enhance this process.
We will consider basic steps and considerations of due diligence through cases and examples and
will consider what questions are posed, what the role of advisors are, what purpose data rooms
play and what opportunities there are intelligence to support the advancement – or defense – of
business interests.
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3.2 In the latter session, students will be exposed to the cross border complexities and the impact of
cultural differences when seeking out information to support business decisions involving the
setting up of business operations and international transactions. Guest speakers are being planned
to provide shared experience from the legal, audit, and investment and sector perspectives.
Required Reading
Walker, Matthew. “Should Intelligence Support to Private Industry be Enhanced?” in Georgetown
Journal of International Affairs. Spring 2011, 8-16.
Harding, David and Ted Rouse. “Human Due Diligence” in Harvard Business Review, April 2007:
124-131.
Goleman, Daniel. “The Focused Leader How effective executives direct their own—and their
organizations’— attention.” In Harvard Business Review, December 2013: 51-60.
Session 4:Mitigation of Risk from Corruption and Misconduct in Global
Business
4.1 Anti-bribery legislation in a multitude of countries (e.g., FCPA, UK Anti-Bribery Act) and data
protection laws are now in place to curb the spread corruption and protect against the abuse of
information. Even the strictest compliance policies and companies that claim resilience against
these types of risks find themselves from time to time in situations where the actions of a manager
may inadvertently and seriously impact upon the integrity of a company. This session looks at the
responsibilities, contradictions in legislation and the role of management.
4.2 In the latter section, students will consider how corporate intelligence techniques may effectively
enhance corporate policies and defend against the risks from corruption and misconduct in the
global marketplace. Considerations will include the challenge of overcoming cultural differences,
business practices, and conflicts with local legislation in the context of compliance requirements
through case examples and potentially a guest speaker.
Required Reading:
Ledeneva, Alena V. Teneoi “Barter: Shadow Barter, Barter Chains, and Nonmonetary Markets” in How Russia
Really Works: The Informal Practices that Shaped Post-Soviet Politics and Business. New York: Cornell
University Press, 2006. Pages 115-143.
Dixon G, G. Goesswein and O. Hohmann “Anti-bribery Laws: Some Comparisons between Germany and the UK”
in International Construction Law Review, January 2013; 30(1):54.
Wagner, Stephen and Lee Dittmar. “The Unexpected Benefits of Sarbanes-Oxley” in Harvard Business Review,
April 2006: 133-140
Heywood P, Meyer-Sahling J. Danger Zones of Corruption: How Management of the Ministerial Bureaucracy
affects Corruption Risks in Poland. Public Administration And Development [serial online]. n.d.; 33(3):191-204.
Serju D, Marioara A. SOME CONSIDERATIONS REGARDING THE MANIFESTATION OF FISCAL FRAUD
IN ROMANIA. Annals of The University of Oradea, Economic Science Series [serial online]. July 2013;
22(1):631-639.
Tušek b, klikovac A. “Corporate governance practices in fraud prevention and detection - empirical evidence from
Croatia” in International Journal Of Management Cases” [serial online]. September 2012; 14(3): 59-71.
Farooq K, Brooks G. Arab fraud and corruption professionals' views in the Arabian Gulf. Journal Of Financial
Crime [serial online]. June 2013; 20(3):338-347.
Berglund, Christofer, Michael Jonsson, Christian Nils Larson & Elias Götz. “Combating Money Laundering in
Eurasia: Lessons from Kyrgyzstan and Georgia” in China and Eurasia Forum Quarterly, Volume 6, No. 3 (2008) p.
21-44.
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Session 5: Responsibility of Management: The Pitfalls of Personal Liability
5.1 In this session we consider the responsibilities of management and offer insights into how
intelligence tools alongside compliance policies enhance the workings of a management board.
We look at the implications the regulatory environment makes on the role of management in
making business decisions and the role and opportunity of the corporate intelligence function in
the mitigation of risk to the integrity of a corporation. We will consider cases to look at
implications of management actions and subsequent liability.
5.2 In the latter session, we will look at the impact of decisions and how personal liability on the part
of management is changing. We consider the importance of archived information, legal advice and
the role of insurance in the day to day function of a senior manager.
Required Reading:
Rupp, John P. and Alexander Melia. “The Bribery Act of 2010: implications for global business and individual
directors.” in Serious Economic Crime: a boardroom guide to prevention and compliance. Chapter 10., Harry
Travers ed. 2011 (ibook).
MALIK R, ROSH R. Are You Covered? Insurance Considerations for Hedge Fund Managers and Directors.
Journal Of Taxation & Regulation Of Financial Institutions [serial online]. November 2012; 26(2):29-38
Pollock J. A Close Eye on Business Partners. Internal Auditor [serial online]. December 2012; 69(6): 43-47.
Session 6: The Security of Business
6.1 The digital age has elevated corporate espionage to be one of the most serious risks facing
businesses globally today. Yet the security function of defending against these risks is often missed
and managers and employees are often oblivious to the presence of these threats. In this session we
will look at cases and examples where businesses have suffered greatly because of the deliberate
theft of information in an effort to raise the future manager’s attention to the importance of
defense.
6.2 In the latter session, we consider how corporate intelligence enhances the security function of a
company and highlights how collecting information on the risk environment is critical in the
defense of the company’s interests. Variations in cultural, legislative complexities and more
traditional perspectives on the role of security can lead management to miss opportunities to
mitigate risk – we will in this session also explore the challenges facing a corporation in an age
where compliance regulations can collide with, for example, regulations concerning the protection
of personal data. We will consider how security in a corporation might be structured and look at
the challenges this involves.
Required Reading:
Petersen, KL., “The Corporate Security Professional: A Hybrid Agent Between Corporate and National Security”
in Security Journal, 2013, 26:3, 222-235.
Shelley L. The Diverse Facilitators of Counterfeiting: A Regional Perspective. Journal Of International Affairs,
Winter 2012; 66(1):19-37.
Javers, Emon. “Secrets and Lies: The Rise of Corporate Espionage in a Global Economy”
Recommended Reading:
Ruskin, Gary. Spooky Business: Corporate Espionage Against Nonprofit Organizations, Centre for Corporate
Policy (www.http://www.corporatepolicy.org/category/issues/corporate-espionage/) , November, 2013.
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Session 7: Metadata and the Future of Intelligence in Business
7.1 Companies create and retain stupefying amounts of data about their employees, processes,
customers, and policies as a matter of course. They harness information about their risks and
opportunities as well as efficiencies and failures. However, we are only now beginning to learn
about how to really interrogate this information and create new perspectives on what metadata can
mean for the future of a company’s business and even to its integrity. We will look at how
intelligence is now being applied to extracting strategically valuable information through
advancements in technology.
7.2 During the latter session, we will consider some of these concepts now being raised by the rise of
metadata and the opportunities open for companies to develop mechanisms of intelligence
gathering that not only predict what their customers will want in the future, but also guard from the
disastrous impacts of fraud, criminality and misconduct. We look the risk posed by the retention
of data, consider legal and ethical challenges, as well as look at the power of forensic detection
capabilities, extraction methods and the rise of predictability and prevention of threats on corporate
integrity through cases and potentially a guest speaker.
Required Reading:
Ross, Jeanne W., Cynthia M. Beath, and Anne Quaadgras. You May Not Need Big Data After All:
Learn how lots of little data can inform everyday decision making.” Harvard Business Review,
December 2013: 90-98.
Chan, Marjorie. Corporate Espionage and Workplace Trust/Distrust in Journal of Business Ethics 42:
45-58, 2003.
Hiltbrand T. “Social Intelligence: The Next Generation of Business Intelligence.” in Business
Intelligence Journal [serial online]. September 2010; 15(3): 7-13.
Session 8: Response to Misconduct
8.1 When an incident emerges that suggests company officers may have responsibility for misconduct
in a company, it is critical that strategic steps be taken to mitigate further damage to the firm’s
integrity and the reputation of its partners. It is equally as important to consider longer term
implications, including any potential costly penalties. Sarbanes Oxley and Dodd Frank, for
example, have tightened reporting requirements, but have also exposed companies to
complications stemming from the cultural gradients in which they operate. With whistle blowers
on the rise, we look at how companies have responded to perceived threats through cases
examples.
8.2 Students in this session will look at the potential of intelligence collection in focusing a company’s
policies around avoiding situations of misconduct as well as consider the basic guidelines of
internal investigations, securing evidence and using external help. Students will review case
studies of misconduct and consider the outcomes of those cases before being broken into work
groups to work through cases through teamwork and brainstorming. Students will assess where
intelligence could be useful and where other management actions could be utilized to mitigate the
threat posed by the misconduct revealed.
Required Reading:
Gold A, Knechel W, Wallage P. The Effect of the Strictness of Consultation Requirements on Fraud Consultation.
Accounting Review [serial online]. May 2012;87(3):925-949
McNeil, Andi. “What's Your Fraud IQ?” in Journal Of Accountancy, August 2013;216(2):26-30.
NICOL?ESCU, EUGEN. "Internal Auditors' Role In Detecting Fraud." In Contemporary Readings In Law &
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Social Justice 5.1 (2013): 106-111.
16. BRIEF BIO OF THE INSTRUCTOR
Nicholas Sarvari, BA (York University), MA (Carleton University) has been working with
the countries of Central & Eastern Europe and the Former Soviet Union since the
early 1990s. He currently leads CNS Risk, an international business consulting
company specializing in corporate intelligence, investigative and business advice to
corporations.
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