Fraud in Organization
It is almost unthinkable to you that your trusted employee that too at higher level and especially with your organization for longer time steal money. But you need to be aware that occupational fraud and corruption is nowadays a great threat to organization of any kind – business, trading, financial institutions, NGOs, INGOs, government and to organization of any size.
As per survey conducted by Association of Certified Fraud Examiners (ACFE) in 2018, private sectors were mostly affected by occupational fraud while not-for-profit sector also affected significantly by occupational fraud. Also, small, medium as well as large organizations were affected by occupational fraud
Announced intentions far from reality
According to the study made by Ernst & Young (EY – one of the leading global accounting firm) in 2018, 97% of the organizations think that they operate with integrity. However, study shows that fraud was considered a persistent global issue. According survey conducted by EY, 11% of the organizations globally experienced a significant fraud in the last two years whilst 38% of the respondents believed that bribery/corrupt practices happen widely in business in their country.
Top Red Flags
Top five red flags identified by the ACFE include living beyond means, financial difficulties, close to vendors or customers, unwilling to share duties, and family problem.
Are You Immune?
Various research and studies reveal that organizations of any type and size are prone to fraud and corruption risk. You need always to pay close attention to behaviors of people around you that could be red flags for fraud and corruption. Al last, you need to build/improve robust fraud risk management system to immunize your organization.