At Core Integrity, we’re about helping organisations learn to be proactive and manage their integrity-related issues such as fraud, corruption, bribery and workplace harassment. We had the incredible opportunity to chat about this very mission with Adrian Franklin at ticker TV.
According to data from the Association of Certified Fraud Examiners (ACFE), 42 per cent of fraud committed is due to the individual living beyond their means and 26 per cent is due to financial difficulties. This number is only expected to rise as COVID-19 increases pressure on Australian families and causes those under some form of financial pressure to rationalise their behaviour – the perfect storm for fraud and misconduct.
We’re seeing a trend where organisations – who rightfully need to cut costs – are reducing funding in non-revenue generating departments and activities like risk, compliance and internal audit. Whilst cutting costs is integral to the survival of the company, these changes can have long-term effects on culture and leave your organisation vulnerable and exposed to internal fraud and misconduct.
So how can your business safeguard its people, reputation and bottom line?
Internal risk management comes from the top down. As a senior executive or owner, you have the obligation to set an example for your organisation and encourage a safe speak up culture where speaking up to report instances of fraud and misconduct is not only the accepted norm – but is celebrated!
It’s one thing to set out to create the right culture for your business, but it’s even more important to ensure you invest in protecting that culture. The impact of a positive workplace culture may not be tangible at first, but happy employees can increase sales, profits, recruiting efforts and staff morale – creating a more productive workforce.
While not all businesses have the budget to implement ‘big ticket’ internal risk management strategies, you can continue to focus on your proactive strategies to drive trust and culture in your workplace. With remote working the new norm for many of us, make sure your team is still driving your policy and procedures home and importantly – “inspecting what it expects”.
We need to learn not to sweep the small stuff to the side – because ultimately those small things can lead to big issues. As we all know from the old saying “sooner or later you’ll have to pay the piper”.
Want to find out more? Get in touch at firstname.lastname@example.org.