Monday, May 23, 2022
outlook business

"Instead of looking for clues, stay clued in"

Arpinder Singh, partner and national leader, EY India, on mitigating fraud

"Instead of looking for clues, stay clued in" Soumik Kar

Management attitude is key:  The management’s approach and perspective are key towards shaping the organisational culture. The tone at the top is essential when it comes to mitigating fraud in businesses and dealing with issues related to compliance. 

Induce a collective conscience: The ethical fabric of an organisation is critical for the creation of sustainable business practices. It is therefore important to develop a code of ethics encompassing the organisation’s core values, which will drive a sense of responsibility into every business association. This will help deter the eventuality of misconduct at an innate level.

Training across levels: The formulation of an ethical framework would be incomplete unless employees don’t understand it. Hence, it is necessary that every employee should be given the right training, as it plays a key role in emphasising the company’s commitment towards curbing fraudulent practices. Ultimately, these sessions ensure that employees are attentive about dos and don’ts and conduct business responsibly.  

Due diligence: Companies need to ensure that thorough background checks are carried out on any external parties that they have a business relationship with, such as vendors, agents, etc. The actions of these external parties have a direct impact on the company and, therefore, these checks help reduce any risks. 

An ear to the ground: While the organisation’s intent to follow mandated policies and procedures may be in place, its success cannot be assessed unless regular checks are done. Hence, companies should continuously monitor the efficiency of the systems in place and proactively plug any gaps which may arise.