Jonathan T. Marks will lead today’s discussion that will focus on the key components of a fraud risk management program and discuss what the board and senior management expect today
Almost daily, U.S. business journals have chronicled the failure of major corporations to discover, evaluate, and mitigate the serious risks that have crippled the companies and financial markets. The disastrous results felt throughout the economy have given new and sharp meaning to the dire need for more muscular, comprehensive enterprise risk management (ERM) in corporate America.
This survey, in collaboration with CFO Research Services, is particularly timely for corporate executives at every level.
If you think Good Tone or Conduct from the Top means you have an ethical environment, guess again!
Some of your people are up to no good.
Corruption can take many forms, but its root cause could and often does include a conflict of interest of some sort and possibly collusion.
OECD states, Conflict of interest
I’m often am asked what can be done to make a fraud risk management program better, assuming one exists. To make something better, one must recognize and come to terms
Related party transactions could be a “red flag“, and must be evaluated with the proper skepticism! Perceived opportunities to commit management fraud include the ability of the fraudster to
It’s a mistake to ignore the human element when fighting fraud within a corporation. There are behavioral and
Ultimately, a monitor should benefit the company, its employees, shareholders, and the public by effectively furthering the goal of preventing and detecting future misconduct.» Read More
At a minimum, as part of (emphasis added) your overall fraud risk management program, the following key processes/functions should be analyzed along with the embedded (key) internal controls,
The Department of Justice (DOJ) said in a release, “Executives at the highest levels of Petrobras — including members of its executive board and board of directors — facilitated the
At some point it appears there was a human behavior theory that was possibly applied to fraud risk management and the 10-80-10 Rule to Ethics was born.
This theory is based on the assumption that 10 percent of the people are ethical all of the time, 80 percent could behave unethically depending on the situation or the pressure(s) being applied, and 10 percent have no or a severely broken moral compass and will pounce on opportunities to commit fraud.» Read More
While we can’t get into the mind of the white collar criminal, we can take a closer look at high-profile individuals who have perpetrated massive fraud at corporations and instances of fraud identified in practice, as well as some research, to help is identify a pattern of similar behavioral elements common to white-collar crooks and cultural elements common to their environments.» Read More
When fighting fraud, many ignore the human element, and that’s a mistake. While we can’t get into the mind of the white-collar criminal, we can take a closer look at
Many companies have an idea, albeit vague, about ERM or enterprise risk management. But few have made real progress in planning or actual implementation. What is the holdup? A practical five-step approach can help companies get their arms around ERM … and begin to realize the benefits of integrated risk management, including escalating the right risks to the right people in a timely manner, and as a result, drive meaningful conversations with leaders to inform decision-making.» Read More
Compliance officers talk about controls constantly. Effective controls are the lifeblood of what makes a compliance program work. Most of us can rattle off examples of controls, or recognize a control when we see one.
So my fellow speaker asked the audience: What is a control?
Nobody dared answer. We all, me included, were suddenly uncertain that we could define a control correctly.
The speaker who posed this question is Jonathan T. Marks, partner at Baker Tilly and a prolific thinker on all things forensics, audit, and internal control. Lately Marks has been asking audit and compliance audiences to define a control — and to his dismay, most people can’t.
Read Marks’ definition of internal control.» Read More
In addition to establishing an ethical environment, board members and management must also take the lead in implementing and maintaining a formal fraud risk management program. One key element of such a program is a fraud risk assessment.
Risk assessments are part of the discipline of risk management, where enhanced frameworks and techniques have emerged. Risk management comprises the identification, assessment, and prioritization of risks followed by the coordinated and efficient use of resources to monitor, minimize, and otherwise control the impact of the risks on the organization.» Read More