Within any organisation, the risk of fraud can be minimised by implementing specific controls, traditional separation of duties, effective pre-employment screening and clear management principles. However, when these controls are poorly maintained, or even absent, the exposure to fraud and risk increases, and the circumvention of internal controls can occur, without you even knowing.
Research has shown that:
- Most frauds are discovered by accident;
- The size of the fraud increases with the seniority and financial authority of the perpetrator;
- Your staff and managers are your greatest threat; approximately 80% of reported frauds are committed internally;
- If the controls and deterrents in an organisation are poor, the risk of fraud increases and honest staff will either be tempted to commit fraud or leave;
- Once a control weakness is discovered, it will be exploited!
Therefore, in the hands of a dishonest employee, corporate systems can be manipulated to the detriment of the organisation by allowing or assisting in the diversion of funds or in the manipulation of records. However, such systems and data can also provide an unparalleled opportunity to improve controls and implement detection routines within the organisation.
For businesses, we offer a number of Corporate Counter Fraud and Risk (CCFR) services, each consisting of a proactive Fraud and Operational Risk Summary (FORS™) Review that comprises of a targeted retrospective examination of one or more chosen areas of your business.
If you have a specific proactive need, then our FORS™ Review is ideal in utilising the investigative and technology experience of our experts to conduct a proactive examination on the activities within a specific business area.
The value in using fraud and risk data mining techniques and technologies as part of your counter fraud and risk
strategy can help you to reveal exposures such as: undetected fraud schemes, due diligence exposures, bribery and corrupt practices, money laundering activities, regulatory non-compliance, and breaches of corporate