A recent case has highlighted the need for companies to put strategies in place to protect their businesses from internal fraud. A former company director pleaded guilty to 14 counts of fraud in the Brisbane District Court after being prosecuted by the Australian Securities and Investments Commission. Reports have shown that employees facing difficult financial times can come under increased pressure to commit fraud. Everybody in an organization can help to reduce fraud – but having a risk management strategy in place can be especially helpful. To reduce the risk, companies can: put policies in place which define fraud; put policies in place to detect fraud; regularly review fraud-related policies; and insure against losses resulting from fraud. Employees are especially well-placed to detect fraud, and should feel empowered to do so. It is especially important that they feel they can report any suspicions they have without fear of retribution.
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