FRAUD & CORRUPTION IN THE WORKPLACE: DETECTION, MANAGEMENT & CONTROL

Module One: 

Fraud and Corruption Control Framework

1. Strong management commitment
2. Resources dedicated to defining, implementing and overseeing fraud and corrupt prevention initiative
3.  Availability of various ethics and integrity-related publications for staff
4.  Various policies and procedures that provide clear guidance to staff on matters such as fraud and corruption control and conflicts of interest/gifts, benefits, and hospitality
5.  Identification and management of fraud and corruption risks via a comprehensive risk assessment and risk treatment plans
6. Pre-employment screening
7. Implementing a Fraud and Corruption Control Framework to prevent fraud

Detecting Fraud and Corruption

1.  An organization-wide fraud detection strategy incorporating continuous monitoring and data mining analytics
2.  Provision of multiple avenues for individuals to report suspected fraud and corruption
3.  A risk-focused Internal Audit function, which also undertakes fraud audits
4.  Availability of internal Public Interest Disclosure officers and documented procedures, with staff, encouraged to make protected disclosures involving suspected improper conduct
5. Periodic reviews by qualified external service providers to review high-risk corporate system data and identify any potentially fraudulent or corrupt behavior

Responding to Fraud and Corruption

1. A comprehensive complaint management system which includes a central portal for reporting instances of suspected fraud and corruption
2. Availability of dedicated, experienced (internal and externally sourced) resources for investigating suspected fraud and corruption who operate in accordance with defined investigation standards
3.  An independent disciplinary system for dealing with staff who have been found to have committed fraud or acted corruptly
4.  Reporting and analysis of fraud and corruption cases to senior management with identification of any emerging trends
5. KPIs for measuring the incidence of fraud and corruption
6.  Maintaining relationships with key external oversight and regulatory bodies in relation to the reporting and investigation of fraud and corruption matters
7.  Legal processes and insurance to recover losses in the event of financial loss

Module Two:  

Stopping Fraud and Corruption

1.  What’s the best approach for stopping fraud and corruption?
2. What’s wrong with just trusting people?
3.  Why isn’t it enough to just sanction someone once such behavior is identified?
4. What can I do to deter fraudulent and corrupt behavior?
5. What is “doing the right thing”?

Internal Controls

1. Segregation of duties, to prevent one person from undertaking an entire transaction alone
2. Clearly established lines of delegated authority and responsibility
3.  Position descriptions that clearly represent the jobs people actually do
4.  Compulsory clearance of overdue accumulated leave particularly for those in key positions of trust
5.  Job rotation (wherever possible) for those in key positions of trust
6.  Staff awareness, education, and training to ensure all staff are aware of and can recognize the signs of possible fraudulent or corrupt behavior
7.  Adequate protective measures for safeguarding, assets, processes, and data
8.  Documentation retained and managed in accordance with records management policy
9.  A work environment where people feel comfortable in raising concerns and are not penalized for doing so
10.  Ongoing management oversight/monitoring of work functions to verify that controls are operating effectively e.g. reconciliations, confirmations, exception reports
11.  Eight tips for great time management and stopping time stealers