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Fraud Risk Management


13 October 2015

Assessing, improving, and monitoring anti-fraud programmes are key elements of an effective internal control structure.

Many have a long way to go to address the challenges of fraud and corruption. Fraud remains a very real risk in the current environment, and companies are still failing to address this risk in a robust manner.

Internationally, regulatory requirements have also driven the demand for a robust anti-fraud programme. As a result of both increasing acts of fraud and the heightened regulatory environment, board members, independent auditors, and other stakeholders are asking executive management pointed questions about how the company is responding to these risks and regulations:

Fraud – Are you doing enough?

Five key factors organizations should consider in relation to fraud risk management:

Benefits to your organization
An anti-fraud programme should help executive management answer these questions by assessing each element of the company's anti-fraud defenses, identifying opportunities for improvement, providing a process for implementing the improvements, and helping management understand how to monitor the effectiveness of the programme going forward.

We believe that a robust anti-fraud programme should:

Our experience


Setting the tone
Our client recognized a need to develop a robust fraud risk management programme.

We created a bespoke fraud risk management programme comprising risk assessments, control evaluation and training. Following several meetings, we were able to determine the company's fraud risk profile and identify gaps in the control environment. We developed anti-fraud policies to guide employees through the complex issues and developed a training pack to be delivered across the business to help raise fraud awareness.

Being proactive
Our client sought help in performing fraud risk assessments and controls monitoring across its global business.

We performed fraud risk assessments globally, conducted interviews with key stakeholders and carried out compliance assessments across high risk areas of the business.

During the course of the fraud risk assessments, we employed fraud investigation techniques. We were able to efficiently identify millions of pounds in questionable expenditure. This included duplicate charges, expenses unsupported by proper documentation, violations of the code of conduct and approvals inconsistent with the company's policies.

Plan reaction
Our client required assistance to effectively structure its global internal investigation framework.

We assessed the company's fraud response plan, including investigation, remediation and disciplinary activities and developed a road-map setting out how the company's governance around matters of integrity could be improved.

Our work provided the company with an effective global internal investigation framework which increased consistency of response to allegations and reports of impropriety.

Copyright © Total Credit & Risk Management Group, 2015

Created on 30-Oct, 2015 by HKCCMA.

Last Edited on 10-Nov, 2015 by HKCCMA.