Target Audience:

This presentation/training targets:

• Every operational involved in the implementation of an anti-fraud plan (including prevention & Detection),

• Whether it is in the implementation phase of a fraud risk management plan and its activities of control to confine the risks of fraud,

• Or in the detection phase, with in particular the participation to crisis committees or missions of investigation

 

Introduction

Since the beginning of the years 2000, has started an unprecedented financial and economic crisis which, for many, finds its origin in defaults of companies’ governance handling, including lack of adequate risk management, and more particularly risks of fraud, corruption and now the issue of the Cybersecurity.

Regularly, important scandals of companies fraud and/or corruption make media’s big titles, with consequences which, although if it’s difficult to evaluate them exactly, are very huge for companies in particular, for business environment and in general for the whole economy. As for examples Enron, Parmalat, Tyco just to name a few, which are emblematic as they could be considered as a sort of starting point with the implementation afterwards of the Sarbanes Oxley regulation.

The objective of that presentation is to raise companies awareness of:

• On one hand, the risk exposure and impact, for companies which would neglect their internal control system and of anti-fraud measures.

• On the other hand, that there are a lot of solutions, within the reach of all companies, in order to manage Fraud risk. 

Last but not least we should not forget that Risk Management is a whole.

As Norman Marks said:

“We don’t, or shouldn’t, address risk for its own sake. That’s what we are doing when we talk about these risk silos”…

“…Talking about cyber, or third party risk, is talking about a problem at an individual root level.

What we need to do is sit back and think about the potential effect of a root level issue on the overall health of the tree”.

So Fraud Management (risk) should be part of global Risk analysis, and we should not forget than an effect of a risk, could be the cause of another risk. With the Kerviel case, Société Générale, a French Bank, had to face a huge risk on its credibility and image.