Internal Fraud Prevention
Subject matter expert (SME) business article writing for LinkedIn:
Do you have the appropriate and balanced prevention controls in place?
Are good ethical practices embedded within your company's culture?
Most businesses seem to focus on the threat of fraud from external sources. The fact is nearly all small businesses have been defrauded by an employee at some point during their trading history.
Internal fraud hits businesses hard not only financially but with reputational damage, regulatory and legally as well as has a huge internal impact.
Senior management should look to promote and establish an internal culture built on integrity and the expectations of integrity for all staff.
Research has shown that firms with strong ethics imbedded in their internal processes and controls result in more loyal and motivated staff.
A zero tolerance to staff fraud and a robust anti fraud internal culture promotes honesty, openness, integrity and diligence.
Poor and unbalanced controls can result in the internal culture implying staff are dishonest and not trusted as well as implying weak and closed management
Firms must accept that there will always be a certain amount of staff fraud so the
objective of these controls is to reduce the level of opportunity and not stifle innovation, motivation and morale.
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