Fraud, financial misconduct, corruption, theft, and embezzlement represent in some form or the other an attack within your company by sometimes your most “trustworthy employees”. Often looking back many fraud indicators may have been present, but as managing director, accounting officer, chief financial officer, chief risk officer, chief audit executive, and line manager we overlooked the core principles of timeously and adequately responding to these risk indicators.
According to the ACFE (Association of Certified Fraud Examiners) Report to the Nations 2022 which Mubesko Africa contributes to, CFE estimates that organisations lose 5% of revenue to FRAUD each year. Typical fraud cases last 12 months before detection. (Organisations with Hotlines detect fraud more quickly and have lower losses than organisations without hotlines).
Why do we wait until fraud has been committed over a sustained period of time and losses are significant, aggravated by the cost and time of investigation and legal actions with the real struggle of recovering the funds stolen?
The risk of fraud, financial misconduct, corruption, theft, and embezzlement was most likely not taken seriously. The mitigating strategies were not properly designed, implemented, and followed up. Lack of governance, oversight, internal control measures, and the absence of timeous effective assurance providers like internal audit may be root causes for the problem
Asking Mubesko professionals to assist you in the fight against losing well-earned revenue and profits might just be the turning point in reducing your reputational and financial risk exposure.
Head: Forensic Investigation.