A Short Guide to Fraud Risk is for: * anyone who needs to better understand fraud risks, either company-wide, or in a specific business unit; * directors and managers who would like to add value by building fraud resistance into their organization and to demonstrate to shareholders, regulators or other stakeholders that they are managing fraud risks, rather than just reacting to incidents; * regulators, auditors and compliance professionals who need to assess the effectiveness of an organisation's fraud prevention measures. The book gives a concise but thorough introduction to the risk of fraud based on a six-element strategy. It includes practical steps to assess and treat fraud risks across an organisation, including those relating to executive directors. It also provides practical steps to develop fraud awareness across an organisation and how to implement an effective fraud detection and incident management program. The application of the principles is illustrated with example documents and numerous case studies aimed at assisting the reader to implement either individual elements or a complete fraud risk management strategy.

This book provides a guide for SMEs to understand the current sources of business fraud risk and the specific risk response actions that can be taken to limit exposure, through the structured discipline of enterprise risk management.

A Comprehensive "C-Level" Guide to Preventing and Responding to Fraud and Misconduct Maintaining and enhancing the integrity of an organization in a global, regulated, and digital environment has become an increasingly complex and difficult challenge for business leaders. Despite major legislative and regulatory reforms over the past decade, the headlines are replete with instances of corporate misdeeds. Indeed, nearly two-thirds of executives surveyed by KPMG reported that fraud and misconduct were significant risks in their industries, and a third of these executives expected fraud or misconduct to rise in their organizations within the year. Managing the Risk of Fraud and Misconduct is an A-to-Z guidebook for business leaders who are looking for an integrated and comprehensive approach for cutting through the complexities in today’s environment. This solution driven book provides insights from top experts who walk you through proven approaches to customize a strategy for preventing, detecting, and responding to fraud and corruption by building a culture of ethics and integrity. Managing the Risk of Fraud and Misconduct will help business leaders to stay a step ahead of tomorrow’s demands by providing guidance on how to: Assess your organization’s vulnerability to fraud and misconduct, and design and implement controls to prevent, detect, and respond to these occurrences Address increased regulatory enforcement and enhanced scrutiny Preserve and create value from corporate governance and compliance programs Use technology and data analytics to mitigate fraud and misconduct risks Evaluate the ongoing effectiveness of your compliance program

How much risk should we take? A Short Guide to Risk Appetite sets out to help all those who need to decide how much risk can be taken in a particular risky and important situation. David Hillson and Ruth Murray-Webster introduce the RARA Model to explain the complementary and central roles of Risk Appetite and Risk Attitude, and along the way they show how other risk-related concepts fit in. Risk thresholds are the external expression of inherent risk appetite, and the challenge is how to set the right thresholds. By progressively deconstructing the RARA Model, the authors show that the essential control step is our ability to choose an appropriate risk attitude. The book contains practical guidance to setting risk thresholds that take proper account of the influences of organisational risk culture and the individual risk preferences of key stakeholders. Alongside this, individuals and organisations need to choose the risk attitude that will optimise their chances of achieving the desired objectives.

Increasingly, top executives view supply markets as sources of competitive advantage and as means of achieving strategic objectives. Procurement is the management activity that makes this happen, and this process depends on a superior risk management capability if it is be effective. Yet, despite its importance, Procurement Risk Management is surprisingly under-developed. Recent Global Risk surveys have pinpointed Supply Chain Vulnerability as one of the four key global risks for the next decade. What is less well known is that this is only half of the story ... risk exposures also exist inside the company and can be just as damaging. No company is an island; it needs suppliers as well as customers. Conventional wisdom puts great emphasis on managing certain aspects of business such as customers; operations; strategy and finances. Typically, however, much less regard is paid to external suppliers and the risks present in dealing with them. As a minimum, suppliers are the sources of materials, services and expert attention which enable the company to feed its business model. When done well, a risk-aware procurement process provides the bonus of competitive advantage, with the ability to capitalise, on the occurrence of unexpected events. This short guide explains just how to do it. Each chapter explores the topic in hand, outlines the risks and the remedies available and offers guidance on the principles and risk prevention.

Following corporate scandals and the recent bankruptcy of large financial institutions, the public believes that one of the responsibilities of governments, regulators and corporate executives is to do business in compliance with basic ethical values. It is now acknowledged that there has been a general decline in ethical standards in the business world, perhaps due in part to a celebrity culture that overvalues wealth and shallow notions of 'success'. Ethics used to be discussed only by philosophers and academics, but it is now apparent to business leaders that companies wishing to survive into the future have to develop effective protection against exposure to 'ethical risk'. This Short Guide, written by a professional with diverse international experience in auditing and fraud prevention who has specialised in ethics-related issues, serves as a resource for all who need a more complete view of the subject and practical guidance to inform their daily business decisions. Providing an overview of the theories of ethics that bear on today's business world, from Adam Smith's liberalism to stakeholder theory, the Guide explains the human behaviour that gives rise to fraud and corruption in terms of a "fraud triangle theory" according to which unethical behaviours happen when three risk components - psychological pressure, opportunity and rationalisation - are present. 'Pressure' is linked to the unfortunate superstar culture, while 'opportunity' can be reduced through application of adequate control mechanisms and corporate governance models. 'Rationalisation' has to do with the ability of an honest individual to justify a dishonest action in his own eyes. Ethics bears directly on this component and an ethical approach can prevent such self-justification. The adoption of appropriate company cultures and corporate governance models, the selection and retention of ethically sound staff and implementation of fair incentive systems are all advocated by the author, who describes the roles within an organisation of the Audit Committee and the Compliance Function. Additionally, the Guide offers a range of tools that can be applied by practitioners in the field, such as codes of conduct, compliance programmes, whistle blowing procedures and risk management processes.

Policymakers and program managers are continually seeking ways to improve accountability in achieving an entity's mission. A key factor in improving accountability in achieving an entity's mission is to implement an effective internal control system. An effective internal control system helps an entity adapt to shifting environments, evolving demands, changing risks, and new priorities. As programs change and entities strive to improve operational processes and implement new technology, management continually evaluates its internal control system so that it is effective and updated when necessary. Section 3512 (c) and (d) of Title 31 of the United States Code (commonly known as the Federal Managers' Financial Integrity Act (FMFIA)) requires the Comptroller General to issue standards for internal control in the federal government.