Developing an Anti-Fraud Culture

This chapter outlines some prerequisites and suggests steps for developing an anti-fraud culture. It draws some prerequisites and suggested steps for developing an anti-fraud culture. A Fraud Policy is used to communicate how an organisation views fraud. The Fraud Risk Manager plays a vital role in translating the need to develop an anti-fraud culture into practical training and risk assessment programmes, so that honest employees at all levels are capable of identifying potential acts of dishonesty by colleagues and third parties. An anti-fraud culture is easier to develop in an organisation where the Chairman and CEO lead by example and are supported by competent and independent non-executive directors. In considering roles and responsibilities, it should not be forgotten that some of the most important participants in any fraud risk management strategy is the employees of the organisation. For fraud risk management to really work, everyone in an organisation should have a role in the prevention and timely detection of fraud.