Fighting Against Fraud

There is no quick fix to prevent fraud. A holistic approach in addressing motivators, prevention, detection and response, is imperative. Too often, companies invest in initiatives in isolation, resulting in ineffectiveness and a false sense of security.

Prevention

Prevention initiatives include:

• Processes: Screening and employment practices relating to new personnel and due diligence over prospective business partners;

• Policies: The Code of Ethics provides a clear guideline to stakeholders of ethical standards and policies outlining the expected behaviour within the workplace or in dealing with the company;
 

• Procedures: Authorisation, accountability and oversight of processes;

• Systems: Data mining may highlight ineffective processes, as well as incomplete or inaccurate data;
 

• Education and training: Too often, employees do not know what to look for and when they do have reason to be suspicious, they do not know how to respond.


Performing fraud risk assessments and prioritising remedial action with a fraud risk profile is imperative in managing the risk of one or more events. The results of the fraud risk assessment should be incorporated with enterprise risk management and internal audit plans. Likewise, these broader risk management initiatives should include an adequate review of fraud risk within the organisation.

 

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