Our 3 top points to effectively manage fraud risks

I don’t have a problem with fraud – do I?

Evidence suggests that for organisations of all sizes and across all sectors fraud is happening right now, but most organisations just don’t know about it.


With fraud and other forms of financial crime becoming a bigger problem to be managed, fraud losses (5% of gross revenue according to the Association of Certified Fraud Examiners) are often a hidden cost.

Add to that the impact of fraud on staff morale and damage to reputation – think false emissions tests; think interest rate fixing!

With big companies still getting it so wrong we ask what three things can organisations of all sizes do to protect themselves from fraud and other forms of financial crime.

1. Be an Ethical business

Good fraud management is about creating the right culture and taking an holistic approach that looks at people as well as processes, that looks beyond pure compliance. People are your biggest fraud threat but also your biggest asset. The majority of people are honest, it is important to acknowledge however that there are a dishonest minority whose intention is to harm your organisation. An effective fraud strategy engages that honest majority in a co-ordinated way to tackle the dishonest minority. How an organisation sets its bonuses and reward packages; how it looks at new deals or opportunities; how it looks after staff, customers and suppliers; these day to day business decisions will all have an impact on the effectiveness of your fight against fraud.

2. Be Proactive

Sitting and waiting for something to happen is not sustainable, organisations need to be proactive in tackling the problem. Understand the nature and extent of your problem through robust continual risk assessments and measurement. Anticipate problems before they become issues; understand the impact for fraud risk in the design of new processes and systems as well as in business development work, particularly where new products or jurisdictions are concerned.

3. Be Prepared

No organisation can ever be completely fraud free so be realistic and acknowledge this. Put processes in place for people to raise concerns without fear or reprisal, and have a response plan so that appropriate, consistent action is taken whenever an incident of fraud is suspected.

Most organisations have the capability to implement a successful fraud strategy but usually need a point in the right direction from a specialist resource. We hope the above will help organisations make a start down the right road. For full details of all the elements of an effective fraud strategy visit our unique Fraud Management Resource Centre.

Fraud Management Resource Centre provides specialist support in the form of on-line self-help guidance and tools.



The above article was written by Neil Tyson, creator of Fraud Management Resource Centre which provides specialist support in the form of on-line up to date self-help guidance and tools. Neil is an accredited corner fraud specialist with over 20 years’ cross industry experience in the design and implementation of robust counter fraud strategies; he has also led major fraud, money laundering and asset tracing investigations.

Neil has used all his experience to devise and write an online package (The Fraud Management Resource Centre) that enables users to put the different building blocks of their fraud strategy in place.  The Self-Assessment Tool provides a unique focus for identifying areas for improvement as well as also providing a benchmark from which progress can be measured. From that self-assessment, organisations can implement a coherent strategy using the other tools within the package in the safe knowledge that they are doing so based on up to date information and cross-industry best practice.

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