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Implementation of fraud risk management still a challenge
A new white paper by KPMG International says that despite business leaders awareness that they must address fraud, implementing a comprehensive and integrated approach to fraud risk management across the enterprise remains a significant challenge
BANGALORE: Implementing a comprehensive and integrated approach to fraud risk management across the enterprise remains a significant challenge, says a new white paper by KPMG International, despite business leaders awareness that they must address fraud.
Effective fraud risk management provides an organization with tools to manage fraud and misconduct risk in a manner that meets regulatory requirements, as well as the entity's business needs and marketplace expectations, according to the white paper, Fraud Risk Management: Developing a Strategy for Prevention, Detection and Response.
"In view of the changes in the regulatory environment by introduction of Clause 49 and other such regulations, the companies need to take a strategic approach to fraud risk management by aligning corporate values with performance," said Deepankar Sanwalka, head, Forensic Services of KPMG in India. "Fraud risk management must become part of the corporate culture. The board, senior management, internal audit, in fact all employees, have a role to play to ensure that the company is enacting and achieving ethical and responsible business practices."
"Fraud prevention cannot be a one-off event. Companies need to view fraud risk management as an ongoing process and should continuously evaluate the effectiveness of their risk strategy and controls, particularly in light of developments in the market or regulatory environment," Rajan Sethuraman, director, KPMG in India said.
"An effective, business-driven fraud and misconduct risk-management approach has three primary objectives---prevention, detection and response," Adam Bates, International Chairman, KPMG Forensic said. "The challenge for companies is to adopt a comprehensive and integrated approach that enables all of the organization's control criteria in these three areas to work together."
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