Importance of a Strong Culture of Fraud Detection

May 27, 2016

Nearly three hundred professionals with insight into their organizations’ fraud risk management responded to a survey conducted by Protiviti and Utica College in late 2015. The survey focused on six key areas: fraud risk governance, fraud risk assessment, fraud prevention techniques, fraud detection techniques, corruption and reporting, and investigation and corrective action. Among other findings, the survey report, Taking the Best Route to Managing Fraud and Corruption Risk, states that organizations without strong fraud detection and reporting programs face a higher risk  of “whistleblower” disclosures.  “The lack of a strong fraud detection and prevention culture,” it says, “can create a vacuum in which some individuals may feel compelled, either morally or for the financial remuneration of a whistleblower ‘bounty,’ to report fraud directly to regulators instead of trusting that their concerns will be fully and fairly investigated internally.”