Fraud is an increasing risk in an organization’s risk portfolio that must be addressed. Manufacturing industry leaders need to ensure that there are program components in place in order to detect and stop this from occurring at their facilities. Losses due to theft and fraud nationally will contribute to losses in the billions of dollars on an annual basis. Review and follow up in the following areas is imperative:
Fraud Risk Management Program Elements
- Defined roles and responsibilities
- Commitment to the program from the top down
- Fraud awareness
- Affirmation process
- Conflicts disclosure
- Fraud risk assessment
- Reporting procedures and whistleblower protection
- Investigative process
- Corrective action
- Quality Assurance
- Continuous monitoring
It is equally imperative that if an organization is not familiar with implementing a program, they get the required expertise in order to customize one for their needs. Costs for implementing such a program will paid for in the future by savings that are realized and in increased profits.
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