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Delegates hear Fiji equally At Risk Of Fraud

Delegates hear Fiji equally At Risk Of Fraud
fijisun.com.fj
April 22
11:55 2016

 

Fiji is equally at risk of fraud as other countries in the world, says Rachael Mah, the managing director and principal trainer in AusAsia Training Institute.

Ms Mah was presenting to delegates at the 2016 Fiji Institute of Accountants Congress at the Sheraton Fiji Resort yesterday.

She described fraud as a knowing misrepresentation of the truth of a material fact to introduce another to his or her detriment.

She revealed statistics suggested at least five per cent of each company’s revenue is subject to fraud risk regardless of size.

“In fact it is greater concern for smaller companies, SMEs, because they have less controls and less resources,” she said.

 

How can Fiji minimise fraud?

Ms Mah said in terms of minimisng fraud risk, it is a joint effort between the executives as well as the employees at all different levels.

“This is right from top to bottom regardless of job roles because risk management is all employees responsibility – it’s not just the managers or general staff,” she said.

 

 How bad is fraud in Fiji?

Ms Mah responded: “I would like to be fair in the sense fraud is happening everywhere. Not just Fiji.

“Statistics I have given is global and the latest 2016 trend indicating the worse kind of fraud that is going to happen is increasing cybercrime.

“This is because people use technology, they make online payments, online purchases. It’s not how bad the fraud is in Fiji – it is a global issue.

“In order to have stronger economic growth, fraud risk management, true fraud awareness training, fraud risk regular assessments will be some of the key strategies.”

A concern Ms Mah highlighted was that companies did not see it important to invest in fraud risk assessment.

“Fraud is an ugly word and people do not like to highlight it for reputation or branding reasons,” she said.

“Therefore how to mitigate fraud risks is have regular trainings and regular awareness.”

 

How to mitigate fraud losses?

  • Ethics – setting right tone at the top. The right initiative has to be set.
  • Governance, risk management and control – have a big impact on the way organisations operate.
  • Clear communication with internal and external stakeholders and regulatory bodies.
  • Fraud risk management review and risk assessment on periodic basis.
  • Engage professional advisors and specialists and trainers to facilitate fraud reviews.

Feedback:  rachnal@fijisun.com.fj

 

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