How to protect your company against corporate fraud?

In recent years, several high profile and infamous corporate fraud cases have been unearthed. Such cases have not only raised questions about existing business practices and norms, but also about corporate governance. A corporate fraud incident can result in business loss, negative press and loss of brand image, loss of jobs and can have a much wider collateral damage, especially for banks and financial institution who finance the businesses. The damage to a business from fraud practice can be multi-layered. Corporate fraud over the years has become more and more sophisticated and difficult to detect.

Corporate leaders cannot wish away or look the other side when such diversionary practices are reported. Leaders must be accountable; they should not only prevent economic offences. The management must not be in denial or try to conceal such acts. There have been instances when any attempt to conceal any wrongful act has led to major PR crisis and brush with law enforcement agencies. Business leaders must understand in the age of social media, and blogs, any whistle-blower can reach out to a much larger audience to report mismanagement in an organization.

Before we discuss any further, we must try to understand a bit more about Corporate fraud.

While there is no air-tight definition of fraud, but typically fraudulent acts include, acts of manipulating of financial statements, asset misappropriation, kickbacks, corruption, embezzlement, cheating, and overbilling.

How can companies insulate against fraud?

A company can certainly insulate against corporate fraud and nip such malpractices in the bud. A company would require strong business ethics and compliance code, strong whistle-blower policy and protection against the whistle blower. Companies can appoint specialists within the larger organization, who will act as a single point of contact to initiate any investigation against such practice. Additionally, companies can hire fraud investigation companies to detect and investigate fraud. Companies can also organise internal trainings to educate employees about reporting any diversion.

Huge companies can have multi-layered protection against misappropriation and mal-practices.

Government action

As companies disappear, non-financial banking and banking institutions collapse and many more industries get red flagged by regulating agencies for fraudulent practices, the Government of India has instituted Serious Fraud Investigation Office (SFIO), a multi-disciplinary organization to investigate corporate frauds. The office has been operational since 2003, however, companies must have internal mechanism to deal with fraudulent practices at an early stage.

Fraud Risk Management Services

There are many fraud risk management services companies in India which provide end -to-end solution. Netrika Consulting & Investigations is a leading Indian firm which engages clients in dealing with sensitive cases. Their in-house experts have decades of experience in detecting fraud of most complex nature. The professional team has delivered close to 100 percent results and have cultivated long list satisfied customers. Their trained team use specific approach and methodology to unearth wrongful practices.

Hiring Netrika Consulting & Investigations

The group offers multiple services – including Fraud risk assessment, designing of fraud risk assessment frameworks based on global best practices and international standards, provide comprehensive and practical solutions for fraud risk management, compliance assessments related to fraud risk management and prevention.

In addition to this, the company also organises fraud risk management workshops and fraud prevention customised trainings for corporate executives.

So, if you are looking to hire a fraud risk management services company, you know which one to approach.