Often, most of the companies take problem of fraud in the passive manner. Sometimes, they relying on the auditors in order to detect the problems or just to put some system in some place that based upon the employees to report the original form of issues, and then they start waiting for, hoping for something, if frauds occur, then they made aware of that. In order to control the Risk management and fraud forensic course in any kind of organization, they need to follow some kind of certain principles. Let us look into those principles.
Fraud Risk Governance: The fraud risk managements need to embed in genes of concern organization in many forms. This may be in the form of written policies, ongoing procedures, and in the form of defined responsibilities, that implements the effective range of programs. Over there, this needs to be clear role of the board and the top managements in setting these forms of policies by reporting in the places to convey needed information about the program and some performance to them. Since most of the organizations vary in many things, that may be on inherent risk, size, and the complexity. There is no one size which fits all the programs, but all programs will address to some problems such as:
- Fraud awareness
- Fraud risk assessment
- Roles and responsibilities
- Conflict disclosure
- Reporting procedures
- Corrective action
- Quality assurance
- Investigation process
- Whistleblower protection
- On-going monitoring
Fraud Risk Assessment: Assessing to the fraud risks greatly involves looking on how the employees can include the top managements that mainly interact with the great resource of the organization. Fraud detection risk management training involved many steps, and in this, this plays a major role. The opportunities as well as the incentives compose one of the legs of fraud triangles are mostly determined by organization.
Fraud Prevention: Preventing the fraud things is far preferable to detect the issues after the fact. In practice, the same kind of systems and controls mainly establishes in order to prevent fraud may help in detecting the issues.
Fraud Detection: Monitoring, controlling, and reporting promote detection of frauds in fast manner. The key detecting measures involves reports mainly designed to highlight the potential, whistleblower policy, and some kind of common indicators of irregular outcome overtime, and some other controls that alert public to potential frauds.
Monitoring and Reporting: Creating some kind of information, which does not get to the right kind of person to take the actions are useless one. One of the key elements in the initial planning for the fraud prevention program is to set the responsibilities as well as the process to ensure the timely information reported to someone who can address to the issue.