2. Law enforcement and the courts are busy with violent crimes and have less time and interest for computer crimes in which no physical harm occurs. 3. Fraud is difficult, costly, and time-consuming to investigate and prosecute. 4. Many law enforcement officials, lawyers, and judges lack the computer skills needed to investigate and prosecute computer crimes. 5. Fraud sentences are often light. A famous example involved C. Arnold Smith, former owner of the San Diego Padres, who was named Mr. San Diego of the Century. Smith was involved in the community and made large political contributions. When investigators discovered he had stolen $200 million from his bank, he pleaded no contest. His sentence was four years of probation. He was fined $30,000, to be paid at the rate of $100 a month for 25 years with no interest. Mr. Smith was 71 at the time. The embezzled money was never recovered. EXTERNAL INFLUENCES External influences include requirements imposed by stock exchanges, the Financial Accounting Standards Board (FASB), the PCAOB, and the SEC. They also include requirements imposed by regulatory agencies, such as those for banks, utilities, and insurance companies. Objective Setting Objective setting is the second ERM component. Management determines what the company hopes to achieve, often referred to as the corporate vision or mission. Management sets objectives at the corporate level and then subdivides them into more specific objectives for company subunits. The company determines what must go right to achieve the objectives and establishes performance measures to determine whether they are met.
