57% of the respondents indicated that their organisations did not conduct independent fraud risk assessment
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
Photograph: Mariane Bazo/Reuters
