History validates that during any financial crisis and economic slumps, those businesses that invest in organization-wide resilience, particularly for prevention and detection of transgression will diminish the effect of the crisis on the overall wellbeing of business as a whole.
As governments employ and execute COVID-19 impetus benefits and other related programmes to support economic endurance, there is an increased prevalence in one significant risk that continues to exist – Fraud. Consequently, it is more imperative than ever to realize the importance of managing the business risk of fraud with effective fraud risk management frameworks.
Fraud doesn’t lie dormant in the course of a crisis, and we frequently see an upsurge of reported incidences, as the detection of such incidents materialize post the crisis indicating a substantial loss, especially at a time when organizations are justifiably more focused on the security and welfare of the workforce.
However, to sustain economic existence and curtail damages, businesses should now consider ways to emerge from this crisis without indicting adverse concerns such as internal and external fraud obstructing the organization’s ability to recover promptly.
The most effective way to develop resiliency towards fraud is to create and implement a comprehensive fraud risk management strategy, including:
Fraud Risk Management Framework
Necessary Fraud Risk Management Guide
Authorized Fraud Risk Management Policy
Amidst the highly unpredictable market landscape, businesses can look at the faults of the present functions to develop prospects of future-proof opportunities for establishing a vigorous fraud-risk management framework. Some shortcomings that can be targeted as opportunity areas are:
Lack Of Supervision and Administration
The present line of defence, such as compliance and fraud risk management teams and inspectors, are no longer working onsite subsequently, as workplaces are empty but remain accessible, offering the prospect of misconduct and transgression and all without any discovery or detection.
Controls and Procedures Being Superseded
As businesses swiftly adapt to new methods of working, the existing fraud risk management controls and procedures may get compromised or overlooked altogether.
Management Distraction and Diversions
Volatile and reactive judgments or decisions made at short notice can leave businesses with little time to contemplate how fraud risk the present fraud risk management policy get impacted.
Once the opportunity areas have been realized, you can start developing the necessary fraud-risk management guide by considering the shortcomings as a motivation. Some challenges that can be perceived as a prospect for motivation are:
Financial hardship and distress due to possible job losses, salary cuts, or terminations.
Prediction of economic decline as the aftermath of the COVID-19 health crisis.
Strain on financial outcomes as businesses fall short to meet essential targets, leading to a drop in share prices and workforce handouts such as bonuses are being withdrawn or terminated.
As it is, compliance and fraud risk management are a tedious business function. To top it, amid the onset of the global pandemic, handling the day-to-day business, combating with the volatile market, and effectively implementing risk management strategies or controls can be a lot to manage.
To help you secure the fraud risk management techniques of your organization, we have mentioned some common challenges faced by clients across all industries that your business can consider mitigating are:
Heightened and increased scale, scope, and urgency of risks
Developing the desired behaviours and levels of consequential outcomes for non-compliance
Skill gap and staff exhaustion, including employees unfamiliar to dealing with financial misconduct
Strains to reduce expenditures, operational costs and enhance margins.
Distorted approach to fraud risk management, negligence towards compliance and increased corruption
Unprecedented fraud instances not formerly contemplated in fraud risk evaluations
At TRC Corporate Consulting, our fraud and risk management experts can help you safeguard your organization to stay prepare before, during and after a crisis has taken place.
Here’s how TRC enables the best fraud risk management services:
World-Class Proficiency In Fraud Investigations
We offer leading fraud risk investigation services across all industries and are skilled in dealing with the most complicated and high-impact cases. Our team of fraud risk management specialists and legal experts can support you to uncover the minutest of facts and comprehend the events behind occurrences of fraud or transgression.
Developing and Improving Business Resilience
Wherever your current inquiries, compliance, and internal audit procedures need expert assistance during this COVID-19 crisis, we can support it. Our fraud risk management team can deliver training, process outsourcing or personnel management and consulting. Our team improves your businesses ability to tackle the COVID-19 challenges and lessen the influence of this crisis into the future.
Compliance, Risk and Fraud Administration
TRC offers proactive reviews of your organization to evaluate the fundamental and inherent risks of your business. Additionally, our fraud and risk management team can also help you determine the effectiveness of your organization’s existing control measures and processes. We deliver well-defined suggestions, recommendations and necessary implementation support that is required to avoid or mitigate risks before they arise.
Reliability And Integrity Due Diligence
Our multi-lingual fraud and risk management team specializes in open-source background research and investigation. We also provide focused international news reporting specific to industry requirements to help you recognize the prospective counterparties and shelter your organization’s reputation.
Logical Risk Analytics
TRC’s independent and expert data analysis and interrogation practices can help your business identify fraud behaviours and tendencies of an organization’s personnel, third-party associates, or business regions. Our professionals enable you to prioritize your efforts where they are needed the most.
Organizations partner with TRC Corporate Consulting to formulate and execute fraud risk management frameworks to attain a competitive lead, better brand reputation and sustainable financial results.
If you have any queries, contact us now!