Fraud is a growing menace. Now is the time to take action in relation to reducing the threat of fraud.
Most organisations, however, don’t give potential fraud too much thought until it is far too late – and the damage is done.
Fraud causes revenue loss, damage to reputation and can lead to regulatory action. In severe cases fraud can even threaten an organisation’s survival.
According to Shane Boyd, Head of Aon’s Fraud Risk Services Team, global statistics indicate that organisations that actively implement preventative initiatives will typically halve their losses if a fraud does occur – as their systems will detect it sooner.
The right framework
Keep the following checklist top of mind when seeking to limit the damage of fraud within an organisation:
- set a zero tolerance tone from the top
- get buy in from senior management
- identify your current risks and vulnerabilities
- assess your existing fraud control programs
- benchmark these programs against a recognised
framework - implement effective controls and policies
- set up effective whistle blowing channels
- ensure staff are trained to recognise and report fraud
- assess your current investigative capabilities
- continually monitor your controls to ensure
they are working and that there are no distinct
weaknesses.
Reading between the lines
Data analytics can also help to safeguard your bottom line, identify key risks facing the enterprise and improve business processes.
Proactively, data analytics is used to identify key enterprise risks such as fraud and to effectively monitor those risks on an ongoing basis.
Reactively, data analytics is used to quantify and isolate incidents of fraud, corruption and financial leakage.
Is your organisation secure?
If you would like more information on how Aon can assist with preventing fraud in your council, contact Shane Boyd on (02) 9253 7541 or shane.boyd@aon.com.au
*Copy supplied by Aon
