WHEN THE ECONOMY TURNS DOWN, FRAUD TURNS UP…
The risk of fraud inevitably increases when there is an economic downturn.
Bowman Gilfillan have teamed up with Exactech, a BEE fraud prevention company, to provide a holistic economic crime strategy package, which incorporates conflict of interest management.
Benefits to our Clients
It has been statistically proven that economic crime prevention packages lower the incidence of economic crime within organisations.
The current economic downturn presents challenges for corporates to detect their existing frauds and to prevent future incidents. The benefit of the package to our clients may be in the form of insurance premium deductions, as well as compliance with good corporate governance, lowering of their own fraud risk, ensuring that plans are in place before incidents occur so as to avoid legal and disciplinary recourse, enhancing existing investors / shareholders confidence etc. This is a great opportunity to be one step ahead with good corporate governance and to retain more earned profits (it’s estimated that the average company loses 7% of its annual turnover to fraud).
The Prevention Pyramid
The Association of Certified Fraud Examiners has recommended the following ‘Prevention Pyramid’ as best practice in preventing fraud …
These nine elements form part of the Sarbannes-Oxley requirements and most probably will form part of the soon-to-be–released King III report.
Fraud, Corruption & Economic Crime Strategy
We have jointly developed the following holistic “economic crime strategy”, which encompasses all the above elements. The goal is to limit the organisation’s exposure to economic crime and to promote the values of an ethical culture.
The Way Forward
To assist our clients to identify their needs insofar as fraud risk management is concerned, we will perform a fraud “7 point health check” which is accredited by the Association of Certified Fraud Examiners, free of charge, to ascertain the gaps in our clients existing fraud risk management program.