The cost of fraud to an organization is approximately 6% of an organizations revenues each year. This is an astounding figure calculated by the Association of Certified Fraud Examiners using a global survey, and supported by several other international and independent authorities. A great means of reducing the damage of known and unknown damages to an organization is through the establishment of a preventive health-check system.
The establishment of clear accountability, responsibility, upper management support, and clear awareness of areas of high risk are fundamental to every organization. In IT Compliance and Controls this is discussed in detail under Principle 1 – Tone at the Top and Principle 3 – Human Resources. A great supplemental to the book’s In Practice guidances – the ACFE has available an excellent Prevention Check List for business leaders.
The document is very simple and has immediate benefits. There are careful guidelines recommended when conducting such efforts that should be embraced. The need for such checklists exists separate from PCI and such regulations, as this is present around the world – consider SocGen (Reports 1-3 detail the fraud!) and WorldCom.
Check out the checklist here today, bring your general council on board, and determine how you can increase your revenues by 6% today.
A special thanks to the ACFE for making this freely available without registration.