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Is India Inc well equipped to tackle fraud?

Is India Inc well equipped to tackle fraud?

Ranju Sarkar
Although several recent surveys involving India's CXOs have indicated a good understanding of fraud and measures to mitigate it, there appears to be a major gap in how these are implemented on the ground, reveals a study by Deloitte. Around half of the 250 CXOs, who took the online assessment by Deloitte Forensic India said they had fraud risk management in place. A snapshot of the analysis:

MEASURES TAKEN TO PREVENT FRAUD
  • 86% of the respondents indicated that they had a written code of conduct for employees but only 53% highlighted that employees were required to sign it annually
  • 75% have identified people within their organisations who can resolve employee queries on ethical dilemmas and guide them on understanding the code of conduct better
  • 57% of the respondents indicated that their organisations did not conduct independent fraud risk assessment of key functions and processes every two years

MEASURES TAKEN TO DETECT FRAUD
  • 37% of the respondents indicated that over 75% of their processes were automated and integrated via an ERP system, and managed centrally
  • 30% highlighted that they did not have a whistle-blower hotline to detect fraud. Another 59% indicated that they had whistle-blowing hotlines managed internally
  • 54% of the respondents indicated that they were able to detect less than 2 instances of fraud in the past financial year
MEASURES TAKEN TO RESPOND TO FRAUD
  • 60% of the respondents indicated that they did not know whether their organisations had a formally documented fraud response plan
  • 51% had an effective system that can receive, manage and track allegations; 45% said they assigned the matter to an independent party for investigation
Source: How prepared is Corporate India to tackle fraud? An analysis of responses to Deloitte Forensic India's Fraud Risk Score self-assessment tool, August 2016
 

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First Published: Aug 26 2016 | 12:22 AM IST

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