Patience Increases Enterprise Fraud Risks in Asia

enterprise risk management

The Asian culture of patience may inevitably put enterprises at risk of enterprise fraud, warned anti-fraud consultancy UKFraud Managing Director Bill Trueman.

“In terms of fraud, this means that fraudsters will also be less impatient, and feel happy to ‘take their time’ with the fraud to make sure that it is right and for the biggest sum,” he said

One way to mitigate this is for Asian enterprises to support or drive the business into making sure that IT supports the relevant processes.

“Every new product or programme change should have ‘fraud thinking’ in it as the fraud losses will be high if the deterrents, protections and processes are not planned for up front.”

He stressed that Asian businesses need to be more aware and pre-emptive, and have a longer time-span in its thinking about fraud and fraudsters.

“Asian business will need to take the same precautions as any other business around the world – not least as they will have the similar issues of technology, systems, processes and of course, people too.”

Other tips he offered for strengthening enterprise IT infrastructures are:

  • Focus attention and efforts on the payments and money transmission areas of the business, and in particular the authorisation of payments, and the tendering for business and projects.

“Make sure that all such transactions are dual-controlled. At least two people need to be involved in payments and these people need to be within a hierarchy and graded by the payment sizes.”

  • Use business technology solutions along with strong operational processes and procedures to monitor what the team is doing. Review the monitoring and exceptions 100% of the time and ensure that there is a system and process for dealing with the problems that occur. And lastly as a deterrent, communicate to the team that the monitoring is happening.
  • Retain, keep, store and back-up data and transactions.

“Nothing should be deletable and people should see and know that this is the case – again as a deterrent.”

Bill Trueman (an independent fraud and risk specialist) is director of RiskSkill and UKFraud.

This article originally published here.

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