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Get the facts on fraud prevention and detection

In the wake of the fraud scandals of Chinese companies listed in the US, CLP spoke to Kroll managing director and leader of its Greater China Financial Investigations practice, Colum Bancroft to learn more about how companies can mitigate the risk of falling victim to fraudulent activities.

Issue: November 2011

Keywords (click to search): fraud Kroll prevention detection risk

In its recently-released annual global fraud report, risk consulting firm Kroll found that 84% of respondents in China fell victim to fraud in the past year. 33% experienced vendor, supplier or procurement fraud, while 28% were hit by information theft, a significant increase from last year’s statistic of 16%. Companies in China reported that their exposure to fraud had increased 12% to 84% from last year and that 60% of frauds were perpetrated by insiders.

CLP: Proper corporate governance is the starting point of risk avoidance. How should this be implemented?

The main component of proper corporate governance is the company culture that’s cultivated and this should be coming down right from the top. Via practical training, it should be relayed throughout the company that there will be zero tolerance of wrongdoing. In addition, the company should have a clear code of conduct, and detailed policies, procedures, and ethics...

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