2013 Asia-Pacific Fraud Survey
Risk mitigation actions
Though companies in the Asia-Pacific have come a long way in reducing the risk of fraud, bribery and corruption, they should continue to focus on specific proactive measures when battling unethical practices.
Five calls to action have been identified to effectively manage these risks:
1. Open two-way communication
Senior management sets the tone from the top down, with a robust framework of rules, employee standards and a culture of compliance. From the bottom up, employees need to take the initiative and step forward when they observe unethical behavior.
2. Share accountability
Fraud should not be seen as a stand-alone compliance issue, but is a reflection of the organization from top to bottom. Businesses need to have a strong code of ethics and to be able to implement disciplinary procedures for breaches of said code.
3. Localize solutions
Ensure local compliance policies are relevant to global best practices, taking account of local customs and cultures. Providing policies and procedures in local languages will improve their application in practice.
4. Conduct regular assessments
Undertake regular anti-fraud and anti-bribery risk assessments by local independent parties to ensure that subsidiaries adhere to local, as well as any relevant overseas, regulations.
5. Invest in resources and tools
Plan ahead by investing in resources and tools today, to effectively detect and deal with the fraud risks of tomorrow.