With fraud and corruption rife and employees posing a threat to business, companies need to upgrade compliance functions.
Fraud and corruption in business are not going away, as evidenced by recent high-profile scandals and companies remain vulnerable to actions by their employees. This is according to new data from EY Global Fraud Investigation & Dispute Services, which says compliance professionals need to be much more involved in strategic and operational business decisions.
Doubt over effectiveness
The 15th Global Fraud Survey reveals executives still see corruption as a sizable problem, especially in emerging markets across the globe. The survey maps how regulation is changing, revealing that increased enforcement and the adoption of new technologies is changing the risk landscapes faced by organisations. The survey, which interviewed 2550 executives from 55 countries and territories, also discusses how companies are addressing these risks through enhanced technologies and increased compliance efforts. Doubt is cast over whether existing fraud prevention efforts by management and increased government enforcement are effective enough to fight fraud and corruption. While many businesses show high levels of maturity in their compliance programs, there is a mismatch with employee behaviour.
Vulnerable to employees
Increased global connectivity means that anyone with access to company data, anywhere in the world, can exploit weaknesses in data security. Companies’ critical digital and physical assets are therefore at greater risk of theft, damage and manipulation by insiders than ever before. The survey also suggests a significant gap in awareness of GDPR for countries both inside and outside of the EU. To ensure effective compliance with GDPR, business will need to consider the required organisational changes and not just the introduction of more “paper policies.” Technological advances in compliance such as enhanced data analytics, combined with an employee-centric approach to providing guidance will result in compliance acting as a key driver of innovation in the use of forensic data analytics, the survey concludes. The survey can be found here