Economic and legal justification for establishing an economic security department in an organization: costs, effects, payback

Abstract

The article substantiates the transition from a regulatory-and-legal to an economic-and-legal approach in making the decision to establish an economic security department (ESD) within an organization. Based on data from international studies (ACFE Report to the Nations 2024, PwC Global Economic Crime and Fraud Survey 2022), the average scale of losses suffered by economic entities due to economic crimes is systematized: a typical organization loses about 5 % of its annual revenue as a result of internal fraud, with a median loss per case of USD 145 thousand. The legal framework for the operation of an ESD in the Russian Federation is disclosed, covering the Strategy of Economic Security for the period up to 2030, the provisions of the Civil and Labour Codes, Federal Laws No. 390-FZ «On Security», No. 98-FZ «On Commercial Secrets», No. 152-FZ «On Personal Data». An author's methodology for assessing the economic efficiency of an ESD is formulated, based on comparing the total cost of ownership (TCO) of the department with the cumulative prevented damage, taking into account direct and indirect effects. Three models of the organizational structure of the ESD are proposed –centralized, decentralized and hybrid – with criteria for selection depending on the scale, industry affiliation and risk profile of the organization.