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Companies must address the challenge of effective fraud risk management, claims
KPMG.
With fraud running at near-record levels in the UK (over £650 million in the first six
months of 2006 alone, according to KPMG’s Fraud Barometer), business leaders are
acutely aware that they must address fraud and fraud-prevention initiatives.
But implementing a comprehensive and integrated approach to fraud risk
management across the enterprise remains a significant challenge, says a new
white paper by KPMG International.
Effective fraud risk management provides an organization with tools to manage
fraud and misconduct risk in a manner that meets regulatory requirements, as
well as the entity’s business needs and marketplace expectations, according to
the KPMG white paper, Fraud Risk Management: Developing a Strategy for
Prevention, Detection, and Response.
“Companies need to take a strategic approach to fraud risk management by
aligning corporate values with performance,” said David Luijerink, director at
KPMG Forensic .
“Fraud risk management must become part of the corporate culture.
"The board,
senior management, internal audit, in fact all employees, have a role to play to
ensure that the company is enacting and achieving ethical and responsible
business practices.
“Fraud prevention cannot be a one-off event.
"Companies need to view fraud risk
management as an ongoing process and should continuously evaluate the
effectiveness of their risk strategy and controls, particularly in light of
developments in the market or regulatory environment.
“An effective, business-driven fraud and misconduct risk-management approach has
three primary objectives: prevention, detection and response.
“The challenge for companies is to adopt a comprehensive and integrated approach
that enables all of the organization’s control criteria in these three areas to
work together.”
Source:
Credit
Control Journal
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