Fraud Risk management
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The document discusses developing a fraud risk management program for an organization. It states that fraud risk management can be handled internally or outsourced, and is affected by factors like company size and culture. Any fraud prevention model should aim to prevent, deter, disrupt, identify and prosecute fraud. The document then lists steps to develop an effective fraud risk management program, such as having fraud prevention as part of the overall risk strategy, establishing policies and controls, training employees, and having whistleblower and reporting systems.
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Fraud Risk management
- 1. Understanding & Developing A FRAUD RISK MANAGEMENT PROGRAM for Your Organization – CFE International Consultancy Group Pte Ltd www.cfe-icg.com
- 2. Traditionally, the practice of risk management comprises acceptance, transference, elimination, control, sharing, insurance and avoidance of a diverse array of risks. Risk management and internal control business models have subsequently been devised which cater for all eventualities - categorised by terms such as business, operational and reputational risk. www.cfe-icg.com CFE International Consultancy Group Pte Ltd
- 3. www.cfe-icg.com CFE International Consultancy Group Pte Ltd
- 4. www.cfe-icg.com CFE International Consultancy Group Pte Ltd If an organisation accepts that it is exposed to fraud – and no organisation is immune to fraud – the next step is to apportion responsibility for fraud risk management.
- 5. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Historically, the management of fraud risk does not lie with any one particular department or practitioner. It can be handled internally or be outsourced, and how it is handled is affected by many variables such as organisational size, industry sector, geographical location, cultural dynamics - and management perception of the problem.
- 6. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Regardless of these variables, any fraud prevention and control model should aim to achieve one, or all, of the five primary objectives: Prevention Deterrence Disruption Identification Civil action/criminal prosecution
- 7. www.cfe-icg.com CFE International Consultancy Group Pte Ltd
- 8. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Consider fraud risk as an integral part of an overall corporate risk management strategy
- 9. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop an integrated strategy for fraud prevention and control
- 10. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop an ownership structure which cascades downwards throughout the organisation
- 11. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a fraud policy statement
- 12. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce an ethics policy
- 13. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Actively promote the policies through the organization
- 14. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish a sound control environment
- 15. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish sound operational control procedures
- 16. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a fraud education, training and awareness programme
- 17. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a Fraud Response Plan, as an integral element of organisational contingency planning.
- 18. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a Whistle blowing Policy.
- 19. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a reporting ‘hotline’
- 20. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Constantly review all policies and procedures
- 21. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Constantly monitor adherence to controls and procedures
- 22. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish a ‘Learn from Experiences Group’
- 23. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop appropriate information and communication systems
- 24. www.cfe-icg.com CFE International Consultancy Group Pte Ltd Thank You Contact Details : Mr. Stanley CHIA (65) 90074179 [email_address]