Best Practices to Mitigate Frauds

Posted: 5 Oct 2016

See all articles by C'Lamt Ho, D.B.A.

C'Lamt Ho, D.B.A.

Saint Leo University | Tampa Area; Saint Leo University - Donald R. Tapia School of Business

Date Written: October 4, 2016

Abstract

In today’s fast paced global business environment, risk of fraud has increased dramatically over the years. It is essential for all stakeholders within each entity to play an important role of managing business fraud risk. It does not matter the size of each business or business sector. Fraud activities have led to the downfall of many companies worldwide. With collapse of large corporation such as Enron, WorldCom, Parmalat, Tyco, HealthSouth, Qwest, AIG, Global Crossing, and the most recent fraud from Wells Fargo, the general public and other stakeholders are expected all organizations to have a zero fraud tolerance culture. Laws and regulations have implemented over the years in which have not deterred or eliminated risk of frauds. With the implementation of Sarbanes-Oxley Act of 2002, the United States Federal Sentencing Guidelines of 2005, and other similar regulations worldwide have increased the pressure for companies to take responsibility in managing frauds, however. Thus, it is critical for all organizations around the world to develop an effective and efficient fraud exposure management program. This includes fraud control policy, fraud risk evaluation standards, fraud prevention techniques, detection control plan, and investigation and corrective action plan. Furthermore, the public and stakeholders should look into the kind of fraud management training that companies have in place and how often staffs receive training on how to detect frauds, investigate frauds, prevent frauds, and take corrective action. With effective and efficient fraud exposure management program and through ongoing effort and diligent, companies around the world can protect itself against fraud and deter future fraud activities. Most importantly, an effective program and take a proactive approach in managing fraud risk could help companies to minimize fraud risk and future losses.

Keywords: Business Fraud, Risk of Fraud Management, Risk Detection, Risk Assessment, Risk Policy

Suggested Citation

Ho, D.B.A., C'Lamt, Best Practices to Mitigate Frauds (October 4, 2016). Available at SSRN: https://ssrn.com/abstract=2847888

C'Lamt Ho, D.B.A. (Contact Author)

Saint Leo University | Tampa Area ( email )

1120 E. Kennedy Blvd., Suite 238
Tampa, FL 33602
United States

Saint Leo University - Donald R. Tapia School of Business ( email )

1120 E. Kennedy Blvd., Suite 238
Tampa, FL 33602
United States

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