Part II. Management Anti-Fraud and Embezzlement Awareness
A remarkable number of managers who suffer catastrophic loss at the hands of an internal fraudster or embezzler did not have the slightest idea that such crimes could or would happen within their operation. Knowledge makes a huge difference. Many high-risk frauds and embezzlements are preventable once managers acknowledge that these crimes can happen—even within their very own operations—and know what to look for and how to minimize such vulnerabilities. Yes, increased management awareness is a vital step in combating internal fraud and embezzlement within any business operation.
Leadership Philosophy Action Points:
1. Recognize that internal fraud can happen in your area of responsibility!
2. Understand that internal fraud cannot take place within any organization without a betrayal of trust.
3. Acknowledge that determining whom to trust is, at best, a nearly impossible and highly complex task.
4. Be like President Reagan: Trust, but check and verify to prevent or detect deceit.
Bottom line, increased fraud and embezzlement awareness and recognition that these crimes can happen within any operation gives business managers the power needed to prevent internal fraud and/or embezzlement.