Detecting internal fraud risks
Context and rationale
Internal fraud is very costly for companies, whatever their activity. Each year it represents a loss of at least 5% of their turnover. While large companies are at the forefront of major media scandals, SMEs are also very hard hit. What does internal fraud consist of? How can you protect yourself from it?
This course will enable you to recognise the main fraud mechanisms, study the different means of detecting and preventing internal fraud, and learn how to protect yourself from fraud.
Training objectives
- Understanding the consequences of fraud risk (misappropriation of assets, corruption, falsification of financial statements...) caused by an employee or an executive.
- Recognising the main fraud mechanisms
- Studying the different means of detecting and preventing internal fraud.
- How to protect yourself from fraud
- How to assess financial losses in the event of internal fraud?
Training content
Introduction: fraud and its economic weight
- Definition of fraud.
- Concepts related to fraud: anomalies and inaccuracies, irregularities, errors.
- The risks incurred and civil and criminal penalties.
- Prosecuting fraudsters.
Identifying the most common situations: types of fraud
- Malicious acts and sabotage.
- Collusion: with a competitor, with a supplier (passive corruption), with a client (active corruption), with a criminal or terrorist organisation.
- Embezzlement, misuse of company assets, scams, conflicts of interest.
Fraudsters and victims: who is involved in internal fraud?
- Analysing the profile of fraudsters.
- What motivates fraudsters?
- Employee fraud and financial fraud.
- The victims: individuals and legal entities.
Uncovering internal fraud: analysing the different means of detection and prevention
- Internal audit, external audit.
- Security procedures, risk management systems.
- Compliance checks, internal control systems.
- The IT analysis tools used.
How can you protect yourself and limit fraud?
- Writing a code of ethics or a code of conduct.
- Training to raise awareness of fraud.
- What is the use of taking out fraud insurance?
- How can the company's services and departments be coordinated to limit fraud?
Assessing financial costs and financial losses
- What about intangible damage?
- What are the indirect consequences?
- Deterioration of business relationships.
- Negative effects on brand image and reputation
- Loss of staff motivation.
- Falling share prices.
Case studies: examples of detection and protection against different internal fraud processes
- The purchasing process
- The sales process
- The stock and fixed assets process
- The payroll process
Let's discuss your training needs
Free, no-obligation offer. An adviser will call you back within 48 hours.