BIZRULES | RuleMap | RedFlagRulez | Visible Knowledge | Knowledgebase | Blog | BRxG | Agility Alliance | Free Newsletter

Business Rules Knowledge Base
Trends
Strategies
Technologies
Methodologies
Frameworks
Vendors
Best Practices
Lessons Learned
Software Tools  
BRE Business Rule Engines
ESExpert Systems
Management Domains
BRM Business Rule Management
BPM Business Process Management
KM Knowledge Management
Rule Resources > Risks and Costs of Breaking the Rules
Join BIZRULES Email List Email:
Rule Resources
Articles
Interviews
Social Networks & User Groups New
White Papers
Presentations
Case Studies
Reviews
Blogs
Risks and Costs of     Breaking the Rules
Examples of business mistakes caused by poor:
  Knowledge Management
  Rules Management
  Process Management
Locations of visitors to this page

 

 
 

The Price of Poor Rules Management

Examples of Business Mistakes Caused by Poor Rules/Process Management

The cost of managing and automating business rules is much less than the price of not managing and automating business rules. Below are examples of companies and people that have paid the price of poor rules management.

Accounting / Audit / SEC Reporting

  • Broadcom finds more option errors - Broadcom Corp., a supplier of chips used in communications devices, said Friday it may need to record expenses starting at $1.5 billion for stock option accounting flaws, double what it had estimated in July. Yahoo.com Sep. 8, 2006
  • McAfee lawyer fired over options grants. Security software firm releases general counsel after learning of his involvement in improper stock options grants in 2000; shares slip. money.cnn.com May 31, 2006
  • Fannie Mae Finds $10.8B in Errors. Fannie Mae has disclosed $10.8 billion in accounting errors stemming from its derivatives and hedging activities. The nation's largest mortgage lender also names MCI executive vice president and CFO Bob Blakely as its new chief financial officer. Stephen Taub, CFO.com November 10, 2005
  • Ex-Andersen Auditors of Enron Cited. When seven accountants for the now-defunct firm audited part of Enron's 1997 financials, they allegedly didn't consolidate the statements of two subsidiaries Chewco and Jedi - into the parent company's audit. Stephen Taub, CFO.com November 04, 2005
  • KPMG Found Using a Tax Shelter It Sold. The Big Four accounting firm reportedly employed the strategy which the IRS later found to be abusive to book a $34 million deduction on its 2001 tax return. CFO.com October 17, 2005

Airlines

Antitrust / Price Fixing

  • Samsung Fined $300 Million for Price Fix. Including the Korean-based chip maker, three companies and five people have now been charged and fines totaling more than $646 million have been levied in connection with the ongoing Department of Justice probe. October 17, 2005. CFO.com.

FCC Do Not Call List Violations

  • AT&T fined $780,000 by FCC for violating Do Not Call List. AT&T might get socked with a $780,000 fine for violating its own "do-not-call" list the first such telemarketing sanction ever. AT&T broke the rules by calling 29 consumers on 78 occasions after they asked not to be called. The proposed fine includes $10,000 for each violation. Nov. 3, 2003. USA Today.

FTC Mail Order Rule Violations

Insurance

IT

  • Old Computer, New Woes for Freddie Mac. Since 2001, the mortgage-finance company miscalculated interest income due to an error in a legacy computer system used for certain mortgage-related securities. Stephen Taub, CFO.com November 08, 2005

Privacy / Pretexting

  • Calif. AG: HP tactics violate state laws - SAN FRANCISCO - While state Attorney General Bill Lockyer has determined Hewlett-Packard Co.'s clandestine investigation of its own board members violated the law, he says it's still unclear whether anyone will be prosecuted. Yahoo.com. Sep. 8, 2006.

This list is always under construction... We welcome your suggestions.

 

BIZRULES is a registered trademark of BizRules.com.  Copyright 2002-2008 BIZRULES. All rights reserved. For further information email or contact us. Revised: 1/18/2008.