A new period of growth will mean more challenges — more potential for fraud, more exposure to corruption and more interest from regulators.
This Ernst & Young report details how companies need to use the coming months to tighten up compliance and anti-fraud programs.
Companies need to instill a top-driven, collective culture of risk management with particular regard to fraud and corruption matters.
CFO respondents said 50% of the boards they reported to made requests for key anti-fraud information in the last 12 months. Only by demanding such data that directors can ensure they are managing their own exposure and making the business aware of the importance of effectively addressing these risks.
Key findings include:
- A substantial number of respondents reported suffering a significant fraud in the past two years
- Despite the increased incidents of fraud, corporate entities’ responses to fraud allegations appear to be ad hoc and inconsistent
- Proactive measures to manage the risk of fraud were also not universally contemplated
- Measures to mitigate corruption and bribery exposure are still not standard practice for companies, including those looking to drive growth through acquisitions