Few firms in Asia factor fraud mitigation into business planning so commit few resources to curb the problem. Sounding the alarm Some simple steps can mitigate fraud. Direction should come from the top. Demonstrating zero tolerance and reviewing controls and procedures on a frequent basis sends the right message to staff, suppliers and clients. Few people would let strangers into their home, but the same caution does not apply to business.
Most companies fail to run background checks on incoming staff, suppliers or clients.
Screening is particularly poor at the senior executive level, despite evidence that trusted senior personnel are the major perpetrators of fraud. Code of conduct. Strict corporate regulations should be made clear to one and all. The code should preclude, among other things, personal gift giving between staff, suppliers and customers. Keep them moving.