Image by Roby© via FlickrKPMG released their Fraud Survey 2009 the other day. Among some of their findings were:
- Nearly a third of executives expect some form of fraud or misconduct to rise in their organizations
- 66% of respondents reported that inadequate internal controls or compliance programs at their organizations enable fraud and misconduct to go unchecked.
- Roughly a quarter of respondents lack effective protocols on how investigations should be conducted and what point the board of directors should be alerted to potential concerns. (check out our website in the next few days to sign up for a webinar addressing internal investigations)
From an EthicsPoint perspective, we've always said the venue is not important - whether fraud is detected by people reporting via a hotline, though face to face conversations with their manager, HR or other appropriate personnel, through controls or other methods - what's important is that your organization have a strong ethical culture, a way to collect reports of misconduct, and a system to consistently investigate, document, resolve and ultimately analyze each report.
But I'm curious as to your reactions - In your own organization or experience, what do you think is the most important channel for detecting fraud?