Fraud Risk Management and Prevention

• Fikret Sebilcioğlu, CFE,CPA,Anti-Bribery Spec. 
• Managing Partner
• E-mail to Fikret

• Gizem Taştemel Dinçkan, CFE
• Manager
• E-mail to Gizem

Every organization is vulnerable to fraud—no entity is immune to that risk. The key to reducing this vulnerability is to be consciously aware of and realistic about the organization’s weaknesses.

Only then can management establish mechanisms that effectively prevent or detect fraudulent activities. In fact, it is those organizations that deny the true possibility of fraud that are placing themselves at the greatest risk.

Fraud Prevention

Fraud deterrence, detection and prevention require a system of rules, which, in their aggregate, minimize the likelihood of fraud occurring while maximizing the possibility of detecting any fraudulent activity that may transpire. The potential of being caught most often persuades likely perpetrators not to commit the fraud. Because of this principle, the existence of a thorough internal control system is essential to fraud prevention.

Fraud Risk Assessment

There are many things that organizations can and should do to minimize the risk that fraud can occur and go undetected. A fraud risk assessment can be a powerful proactive tool in the fight against fraud for any business.

Regulators, professional standard-setters, and law enforcement authorities continue to emphasize the crucial role that fraud risk assessment plays in developing and maintaining effective fraud risk management programs and controls.

How Cerebra can help

Our integrated approach to fraud control helps organizations to understand their susceptibility to fraud risk, identify high-risk fraud areas, develop a fraud control plan to address areas of critical fraud risk, monitor the ongoing effectiveness of fraud risk mitigation, and respond to actual instances of fraud.

Cerebra utilizes ACFE’s fraud risk management methodology to assist clients in their continuous efforts to prevent, detect and respond to fraud and misconduct through the design, implementation, and evaluation of applicable programs and controls.  

We divide anti-fraud program into three headings:

1. Prevent instances of fraud from occurring
2. Detect instances when they do occur
3. Respond appropriately and take action when fraud occur

Prevention program includes followings:

• Fraud risk assessment
• Process-specific fraud risk controls
• Code of conduct and related standards
• Board, management and staff fraud awareness training

Detection program includes followings:

• Fraud risk assessments and fraud risk identification
• Internal and external audit procedures
• Data analytics

Response program includes followings:

• Management and investigation of fraud allegations and potential loss
• Securing relevant evidence, including witness statements, documentary and electronic evidence
• Remediation plans