Corporate Fraud Risk Management -by Pr. Kelly M. Kingsly 2018

The race for growth accounts for the many shortcuts that corporate workers and organizations engage in fraudulent practices. In a time such as this where technology is growing at more than a proportionate rate to the internal control mechanisms in place, it is important to understand the challenge closely. Segregation of duties enforces internal control and mitigates risk but to what extent. We must be educated on the concept to avert risk consciously or unconsciously. Uncontained risk is gaining awareness by the day. Increased risk management has attracted much mainstream attention in the wake of economic meltdown. Fortunately or unfortunately, many managers do not fully comprehend the ravaging effect of fraud can cause to their companies. Alarming as concern is the fact that most often, fraud is always noticed after the act has been perpetrated.

Research studies show organization lose about 5% of their revenue to fraudulent practices. This alone cannot overemphasize the strong antifraud and proactive stance that the regulation is supposed to be very clear. As organizations focus on growth and building prosperity, focus and importance should be given to detection, prevention, and mitigating loss.