This means mounting an investigation, a seemingly simple solution. However, consider the bank's image, political and personal relationships, the violation of trust, management confidence, and a myriad of other issues. Unfortunately, when indications of impropriety arise, managements often react emotionally because of the violation of trust. An emotional, knee-jerk reaction can compromise an inquiry before it begins. The first danger faced is a rush to judgment about potential involvement and scope of the problem.
Innocent behaviors become suspect, and the futures of innocent people are jeopardized.
Suspicion and wild theories of conspiracy abound when a fraud is discovered. Senior executives must put aside the emotional baggage and approach the problem as a management issue. This is critical to the success of the inquiry. Careful planning is at the heart of every successful investigation. Secrecy Information about the suspected fraud should be limited to those with a need to know.