Disaster preparedness plans are often equated with business continuity.
Outside of sacking those guilty of mishandling company finances (read fraud), how do you continue financial operations when those are the very operations you must remediate?
Preparedness starts with having policies in place.
Does your company have a procedure in place that tells employees what to do if they suspect fraud? Here is a good example of a sample fraud policy from the Association of Certified Fraud Examiners (ACFE).
Harvard Law School provides 10 steps on how a financial services firm should handle a corporate crisis in its article Handling a Corporate Crisis.
A bigger challenge is finding information regarding what to communicate to your employees once fraud is detected and discipline begins.
KPMG states in its Fraud Risk Management – Developing a Strategy for Prevention, Detection and Response – Advisory Report that it is important to communicate to employees that management has/is responding with corrective actions.
Strong internal controls certainly serve to thwart fraud. Ensure that you also have a well thought-out policy in place that covers fraud prevention, detection and response.
Regarding improving your internal controls, see how ART, SkyStem’s account reconciliation and financial close automation solution, can help.