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Minimising regulatory enquiries, fraud and business disputes through carefully planned preventive measures is far more cost-effective than remediation.
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Group A |
Group B |
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Companies with up to 5 controls |
Companies with more than 5 controls |
| Percentage of companies that reported detecting fraud |
39% |
21% |
| Average number of reported incidents of fraud per company |
6 |
9 |
| Detected financial loss through fraud per company |
US$812,000 |
US$2,449,000 |
| Percentage of companies that reported (at least partial) recovery of losses |
43% |
52% | |
PricewaterhouseCoopers' Economic Crime Survey 2005 found that companies with a larger number of fraud controls reported that not only did they uncover incidents of fraud more frequently, but also that the frauds they detected were three times more financially damaging. In addition, a higher number of the companies that implemented more than five measures were able to recover their losses (at least in part).
We can help organisations review their fraud policies and procedures to ensure they effectively reduce risk, improve process, and are in compliance with prevailing laws and regulations. This involves identifying the company's specific fraud risks and then developing and implementing controls, procedures and operational changes to mitigate these risks. This will involve some or all of the components set out below:
Schematic of our Fraud Risk Management Process
Companies not only face fraud risks from within, but also when entering into business relationships with new parties, investing in capital projects, or when acquiring another existing business entity, in particular those operating in different jurisdictions where local regulations may not be as explicit or tangible.
Our pro-active services are designed for responsible and progressive organisations that decide to conduct pro-active Fraud Risk Assessments to assess and manage such risks before problems surface. We can review proposed acquisition targets, subcontractors and agents to test for compliance issues or risks in accordance with SOX 404, FCPA and other anti-bribery legislation.
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