Preventing Fraud Starts with Creating a “Fraud Free Culture”
The ARA team proactively works with clients to prevent and deter employee fraud before it occurs. We apply proven and “outside the box” methodologies to protect company profits and provide our clients with a return on investment.
Fraud does not discriminate, in fact, 1 out of every 3 privately held company is a victim of employee fraud. Our team will help you build a customized and comprehensive employee fraud prevention program with your business needs in mind. We apply the ARA Approach, which is a proven five step business process, that when consistently applied will help organizations minimize the risks associated with employee fraud and misconduct.
The ARA Approach includes:
1. Hire Ethical Employees – Having a strong hiring process in place that includes assessing applicant’s level of integrity is the first line of defense to creating a fraud free culture. Most companies think that a background check alone will prevent a bad hire. When in reality, this is not accurate. Statistics show that only 15 – 17% of applicants will have a criminal conviction on their record. Adding in pre-employment integrity testing and/or integrity interviews into your hiring process will significantly decrease the risk of making a bad hire.
2. Build a Strong Organizational Culture – Once you hire the right employee who is ethical, it is important to provide a strong company culture to keep them honest. The lower the culture environment is within an organization, the greater the opportunity for the employee to rationalize stealing from their employer. A strong company culture not only reduces fraud, but improves employee productivity, engagement, profitability and reduces employee turnover.
• Conduct culture surveys and round tables
• Management must set the “Tone at the Top”
• Perform Anti-fraud and HR training annually
• Implement a hotline and reward program Tips is the number 1 method of fraud detection.
• Build customized fraud prevention programs that are incorporated into the company’s culture
3. Establish Internal Controls and Procedures – Having sound policies and procedures help to prevent and detect theft, embezzlement, performance issues and HR issues such as discrimination practices, workplace violence, harassment, etc.
• Develop a system of checks and balances
• Implement anti-fraud policies including Code of Conduct, Ethics and Conflict of Interest
• Sound operational and accounting procedures
• Implement vendor policies and procedures• Security of high dollar assets, including IT infrastructures
• Access control & CCTV monitoring
• Locks and key control
• Insure for loss by putting a Crime Policy & Cyber Crime Policy in place
4. Conduct Audits & Assessments – Audits allow companies to identify organizational vulnerabilities, fraud, and employee misconduct. In addition, audits and spot checks create “a perception of control” with your employees which can deter fraud before it starts.
• Perform a Fraud Risk Assessment annually or bi-annually
• Conduct random spot checks and audits on high risk areas on a regular basis
• Conduct an Investigation as soon as fraud or theft is suspected or identified
To learn more, please contact us at 636-346-9273 or email us at firstname.lastname@example.org