Understanding & Developing A FRAUD RISK MANAGEMENT PROGRAM for Your Organization – CFE International Consultancy Group Pte Ltd www.cfe-icg.com

Traditionally, the practice of risk management comprises acceptance, transference, elimination, control, sharing, insurance and avoidance of a diverse array of risks. Risk management and internal control business models have subsequently been devised which cater for all eventualities - categorised by terms such as business, operational and reputational risk. www.cfe-icg.com CFE International Consultancy Group Pte Ltd

www.cfe-icg.com CFE International Consultancy Group Pte Ltd

www.cfe-icg.com CFE International Consultancy Group Pte Ltd If an organisation accepts that it is exposed to fraud – and no organisation is immune to fraud – the next step is to apportion responsibility for fraud risk management.

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Historically, the management of fraud risk does not lie with any one particular department or practitioner. It can be handled internally or be outsourced, and how it is handled is affected by many variables such as organisational size, industry sector, geographical location, cultural dynamics - and management perception of the problem.

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Regardless of these variables, any fraud prevention and control model should aim to achieve one, or all, of the five primary objectives: Prevention Deterrence Disruption Identification Civil action/criminal prosecution

Regardless of these variables, any fraud prevention and control model should aim to achieve one, or all, of the five primary objectives:

Prevention

Deterrence

Disruption

Identification

Civil action/criminal prosecution

www.cfe-icg.com CFE International Consultancy Group Pte Ltd

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Consider fraud risk as an integral part of an overall corporate risk management strategy

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop an integrated strategy for fraud prevention and control

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop an ownership structure which cascades downwards throughout the organisation

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a fraud policy statement

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce an ethics policy

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Actively promote the policies through the organization

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish a sound control environment

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish sound operational control procedures

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a fraud education, training and awareness programme

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a Fraud Response Plan, as an integral element of organisational contingency planning.

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a Whistle blowing Policy.

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Introduce a reporting ‘hotline’

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Constantly review all policies and procedures

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Constantly monitor adherence to controls and procedures

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Establish a ‘Learn from Experiences Group’

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Develop appropriate information and communication systems

www.cfe-icg.com CFE International Consultancy Group Pte Ltd Thank You Contact Details : Mr. Stanley CHIA (65) 90074179 [email_address]