A proactive approach makes good business sense – especially in difficult economic times
A strong corporate culture alone will not protect an organisation from significant misconduct. While cultivating an ethical work environment is a critical first step, attacking significant risks also requires:
- an effective first line of defense,
- strong internal controls,
- monitoring/auditing procedures that leverage technology to detect key risk indicators on a timely basis.
When economic conditions decline, companies should proactively consider fraud risks – particularly those most common or unique to their industry and theatres of operation – as part of their anti-fraud programmes rather than waiting for government bodies, auditors, customers or the press to find fraud, waste or abuse.
With proper planning, policies and procedures, and controls, companies can reduce the risk of serious fraud, identify fraud occurrences early and minimise the damage thereof. A detailed fraud risk management programme can also help companies effectively respond to a fraud incident with appropriate investigation and remediation. As always, prevention is better than a cure. And the payoff can be significant.
How we can help
PwC's experienced and knowledgeable teams manage and reduce the risks of fraud, corruption or abuse. We can help you:
- Identify your organisation’s vulnerability to financial and operational irregularities and evaluate potential gaps in youranti-fraud programme.
- Understand how effectively your organisation’s misconduct management programme engages people, processes, and technologies to address misconduct risk compared to your peers, as well as industry benchmarks and standards.
- Remediate gaps with practical, customised solutions that identify, monitor and report on key risk factors and indicators; evaluate the likelihood and significance associated with each potential and actual fraud instance; establish processes to track key qualitative and quantitative measures; and provide the training required to raise awareness about fraud and misconduct across the organisation.
- Monitor specific business units that require additional oversight by establishing periodic checkpoints for operational fraud risk assessment.
- Develop an effective “first line of defense” by training operations and finance personnel on misconduct risk management.
The benefits of a practical, experienced-based, and multi-disciplinary approach to managing risk
Because risk varies by sector and market, PwC combines fraud subject-matter specialists, global reach and local knowledge with our industry sector operational knowhow to create a powerful team of professionals who can create value by helping clients to:
- Avoid revenue leakage.
- Cut spending while avoiding longer term surprises.
- Protect physical and intellectual property.
- Gain a competitive advantage in frontier and emerging markets.
- Mitigate legal and regulatory risk.
- Safeguard brand value and the personal reputation of senior management and the board.