Managing the Fraud Risk

Somebody in your company is committing fraud. If they are not actually doing it, they are certainly planning or at least thinking about it.

Unfortunately, many senior executives in this position prefer not to acknowledge this fact because they feel it may reflect on their competence in running the company. This is not so. Such is the nature of fraud that even the most experienced and competent chief executive can't be expected to avoid it. After all if can happen right under the noses of the Metropolitan Police what chance do anybody else stand? Actually, a very good chance. Here's why.

Like all things in business it is about minimizing risk. Managing the risk of fraud is no different, but until recently it is not one that has not been practically taught in business school. As such it has become the elephant in the boardroom. But there is a process, and tools are available, for managing the risk of fraud. The Investitec Fraud Risk Management (FRM) program has been developed from best practices as identified by the Association of Certified Fraud Examiners, the Institute of Internal Auditors and the American Institute of Certified Public Accountants . It is something we recommend you and your board give very serious consideration to, especially if your business is going through any form of change, restructuring, merger or acquisition.

There are a couple of ways we can help you assess the need for a FRM program. The first is to undertake an inexpensive Fraud Check-up. Even if your organisation has some anti-fraud measures in place, we can almost guarantee this comprehensive tool will identify other areas of vulnerability. The second is to take our one day course on the Principles of Fraud Risk Management. If you decide that implementing a Fraud Risk Program is right for your organisation, we can put together a proposal to act as consulting managers to see the process through from start to finish.

The FSA's Fraud Governance report, published in 2006, found that the larger financial firms, driven by mounting fraud losses, have taken steps to strengthen their fraud management capabilities. But these improvements are relatively recent and firms can go further to protect themselves and their customers from fraud.

Investitec Fraud Risk Management Consultancy covers the following elements;

Governance
Risk Assessment
Prevention
Detection
Investigation and Recovery

Our Fraud Risk Management program is probably the most comprehensive in the UK. No organization that recognizes the financial cost of fraud - up to 6% of turnover, nor the cost to reputation, can afford to ignore the increasing risk that fraud in the commercial sector presents.

Our commercial experience means that we understand the need to balance the risk against the management of of day-to-day business and our program reflects this.

*NEW*
Our Risk Management program now includes Bribery Act 2010 "adequate procedures"

Consultancy & Advice
Implementation
Communications & Training
Verification and Monitoring

For more information contact us