Fraud risk management: a guide to good practice

Page 68

Appendix 7 A 16 step fraud prevention plan

1

Consider fraud risk as an integral part of your overall corporate risk-management strategy.

2

Develop an integrated strategy for fraud prevention and control.

3

Develop an ownership structure from the top to the bottom of the organisation.

4

Introduce a fraud policy statement.

5

Introduce an ethics policy statement.

6

Actively promote these policies through the organisation.

7

Establish a control environment.

8

Establish sound operational control procedures.

9

Introduce a fraud education, training and awareness programme.

10 Introduce a fraud response plan as an integral part of the organisation’s contingency plans. 11 Introduce a whistle-blowing policy. 12 Introduce a reporting hotline. 13 Constantly review all anti-fraud policies and procedures. 14 Constantly monitor adherence to controls and procedures. 15 Establish a learn from experience group. 16 Develop appropriate information and communication systems.

Source: Defence Mechanism, Financial Management, September 2002

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