Fraud, bribery and corruption risk is right at the top of the agenda of issues that can harm an organisation. This financial and/or reputation harm covers all companies and government entities, regardless of industry or specialisation. Fraud or improper conduct can occur in almost all business processes such as procurement, payroll, accounts receivable, accounts payable, asset management, IT and the protection of confidential information and data.
With a total worldwide fraud loss of nearly $3.7 trillion (source: Association of Certified Fraud Examiners (ACFE)), increasing shareholder and stakeholder interest, evidence that the presence of anti-fraud controls is associated with reduced fraud losses, and the continual focus on prudent government expenditure of public money, the time has never been better to ‘get to know what you may not know’. Nationally, fraud within Australia is recognised as 40% of the cost of all crime (source: Australian Institute of Criminology (AIC)). Organisations can lose up to 5% of their annual revenue due to fraud, varying between industries (source: ACFE).
The following are key areas of focus for mitigating fraud, bribery and corruption.
Planning, resourcing, implementation and management
- Executive leadership and operational management of the fraud, bribery and corruption control framework
- Devising, reviewing or benchmarking existing fraud, bribery, and corruption control arrangements against standards (such as the Australian Standard AS 8001 Fraud and Corruption Control) and other leading practice. To maximise business efficiency and effectiveness, this needs to be integrated with your governance, risk and internal control environment.
- Integrity framework (including codes of conduct or ethics, ethics committees)
- Awareness training to employees, executives and management, those with fraud control responsibilities
- Fraud, bribery and corruption risk assessments (AS/NZS ISO 31000 Risk Management or COSOcompliant as required) and reviews, employee surveys
- Forensic background checking, including employment screening
- Controls testing, fraud profiling
- Fraud, bribery and corruption diagnostics, ‘deep dives’
- Forensic IT
- Whistleblower hotline or help line advice
- Other techniques such as surprise forensic audits/special reviews, forensic background checking, fraud red flag reviews
- Fraud crisis management
- Investigation response (multi-disciplinary forensic investigations, procedures, planning, teaming)
- Liaison with, and supporting any reporting to, law enforcement agencies as necessary