Corporate fraud

Corporate fraud often stems from low organizational management level, inadequate risk assessment and disregard
for tasks allocation and roles delimitation

Governance, Risk and Compliance (GRC) framework, which addresses these issues and determines key points which must accord with established standards and not affect business continuity, is created on the basis of evaluation of controls’ relevance conducted by all the specialists responsible for internal threat mitigation.

 

1 Management Controls

Employee behavior is regulated by:

Code of conduct

The code demands that a specific rule set is abided by. Each department can have its own instruction regarding safety and security. For example, if private devices are restricted in some area or access rights are limited and rigorously managed, the risk of incidents caused by improperly configured access or leakage through personal gadgets can be minimized.

 

Ethics & compliance

A company’s ethics and compliance management program is designed as a guidance facilitating conformity to the established corporate ethical norms and regulatory compliance. Among the points which are highlighted within the program there can be anti-discrimination principle, misconduct preventive measures, employee and consumer privacy rules, as well as hiring procedure and security requirements.

 

Anti-bribery policy

Anti-corruption policies are strict and clear. Businesses guard their reputation emphasizing transparency and clarity of the processes.

 

Departments

 

Anti-fraud management

Anti-fraud management

Revenue assurance

Revenue assurance

 

Many organizations include a remark addressing third parties which are expected to follow the rules with the same willingness.

The policies are developed and governed by Legal, Ethics & Compliance managers

Internal threat mitigation solution helps you shape the framework and supervise the adherence to the rules, tweak the knobs of the company’s monitoring mechanism in order to adjust the level of controls and the relevance of measures taken to ensure ongoing surveillance within an organization. The system assists you with creating policies for the scope of your company and corporate culture.

Instruments helping to oversee the workflow and maintain a healthy workplace environment prevent incidents caused by violating any section of the framework.

 

Underpin your framework to enhance governance

 

2 Internal Control

Segregation of Duties (SoD)

Conduct an analysis – determine who has access rights and what data is accessed.

Build a framework in accordance with which the roles and tasks will be assigned, and any allocation contradicting the rules or any deviation will be promptly detected. As soon as misassignment is identified it is easier to discern a problem and prevent a fraud. The concept of the least privilege dictates a play-safe but helpful approach.

Properly introduced and supervised SoD matrix helps you turn a fastidious and exacting job into an accurate software overseer.

SearchInform’s system facilitates SoD matrix development, detection of conflict roles and helps you map controls in order to recognize them promptly.

The correct segregation of duties eliminates threats related to excessive permissions and arbitrariness.

Segregation of duties prevents organizational conflict caused by employees who supervise their own performance

One person can’t do both create and approve or prepare and assess

Conflict roles

  • creates requisition – approves requisition
  • does bank reconciliation – approves vendor payment

Three lines of defense

1 line

Business functions, Operational management

Full responsibility for the risks, providing correct controls conforming to the highest standard

2 line

Internal Control, Risk Management, Information Security, Compliance, Financial Control

Implementation of efficient risk management program, providing relevant information about risks

3 line

Internal Audit

Audit performing, ensuring consistent application of efficient measures

Risk Assessment Matrix

Risk Assessment Matrix

 

3 Internal Audit

Internal Audit analyzes the performance of Internal Control. The department evaluates and verifies the ways a business understands risks and requirements.

 

Continuous auditing

Internal Audit instruments allow continuous auditing running in the background of your workflow. You can look at and study the red flags any time and consider launching an investigation.

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