2. Strong, effective ethics and policies and guidelines: Having ABAC policies and codes of conduct is not enough, employees need to understand the importance of these policies and codes of conduct, and know what is required of them.
3. Enhance third party due diligence: APAC organisations need to look into improving their due diligence and monitoring of all third parties — from joint venture partners and material subcontractors to distributors and marketing agents. Companies also need to be aware of fraud, bribery and corruption risks in relation to transactions. Those involved in mergers and acquisition (M&A) need to make sure the right questions are asked and diligence is targeted on the right areas.
4. Leverage big data and forensic data analytics (FDA): APAC companies should explore FDA to reinforce their fraud, bribery and corruption risk management framework. FDA integrates statistical analysis, anomaly detection, data visualisation and text mining to identify unusual transactions.
5. Improve whistleblower hotline handling: Having a whistleblower hotline is not enough. Employees must also be confident that their reports will be dealt with in a transparent and confidential manner, and that they will be protected from retaliation.
Would sharing of data help prevent fraud?
Sharing of data will certainly help to prevent fraud. For example, in the UK, insurance companies can do a cross check on suspicious claimers against a database of known insurance fraudsters.
At EY, we hold regular seminars and industry roundtable sessions to share leading fraud prevention and detection practices and common fraud scheme with organisations. This allows companies to keep abreast with the latest developments in the fraud space and prepare against these threats.
How does fraud prevention impact recruitment, talent retention and business continuity?
Our Asia Pacific Fraud Survey 2015 revealed that ethical business practices are directly related to attracting and retaining talent. In fact, 80 percent of 1,500 respondents across APAC claimed that they would be unwilling to work for organisations involved in bribery and corruption. Also, 67 percent of APAC respondents see strong reputation for ethical behaviour as a commercial advantage.
Retaining talent is more than just competitive salaries and working conditions. Employees must also have confidence that their organisations will act ethically.
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