It is clear that every organisation can experience internal threats and steps need to be taken to combat and prevent this.
The following considerations may assist you when addressing such concerns:
Has your organisation put in place procedures and appropriate governance measures so that fraud risks can be identified?
This means developing a system of corporate governance that is appropriately circulated and is regularly reviewed to ensure this it is fit for purpose
Make sure you know what is going on in your organisation.
You should be fully sighted on all aspects of your business and how they work. You can then ensure that your corporate governance measures encompass all areas, with no gaps in the internal control process
Have you conducted a fraud risk assessment?
You will need to take into account the prevalent types of fraud in your industry and how vulnerable your organisation is to them
It is essential that such measures are not only developed but owned and actioned by appropriate managers and regarded as an integral part of the business
Do you have arrangements in place with regard to whistleblowing?
- This should include a hotline with the required level of confidentiality and clear arrangements for dealing with this type of information if reported
- How robust are your vetting procedures for members of staff?
- It should be remembered that Organised Crime Groups actively target specific businesses to obtain insider information to facilitate their criminal activities.
- Vetting is not a once only process at the time of recruitment. It should be seen as an on - going process conducted on a regular basis, or as and when circumstances dictate
- How aware are your staff, and supervisors, in particular to potential fraud within the organisation?
- Staff need to mindful of certain indicators that may indicate fraud.
- These could be employees who are
- working excessive hours,
- very controlling over their area of responsibility,
- reluctant to delegate even minor issues,
- not taking annual leave.
- It may be that these individuals are also very productive and as a result may enjoy a degree of protection from senior managers.
Of course these factors alone do not prove that any malpractice is taking place but may indicate that management intervention is appropriate to assess the situation
You should be aware that so many of the bigger frauds happen not as a result of sophisticated schemes and subtle intrigue, but simply because the basic controls and sound management processes are not applied. Fraudsters will identify and exploit weaknesses in your systems.
