complianceonline ppt format 2015 developing an effective fraud risk management program 4.9.2015

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© 2015 ComplianceOnline

This training session is sponsored by

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Developing an Effective Fraud Risk Management Program

This Training is Brought to you by ComplianceOnline.

Presenter: Craig M. Taggart

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Areas Covered in the Webinar: Identify fraud risks and the factors that influence them Analyze existing risk management frameworks and

their application to managing fraud risk Develop and implement the necessary components of

a successful fraud risk management program Identify the elements of a strong ethical corporate

culture Conduct a cost effective fraud risk assessment

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Agenda

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The risk of fraud is just one of the many types of risks to be managed by an organization. But to let this risk fall out of focus can bring catastrophic results. Building an effective fraud risk management program to combat organizational fraud requires solid understanding of how and why fraud is perpetrated. This course will discuss the components of a fraudulent act, different types of fraud schemes and the impact fraud has on organizations. It will also analyze why individuals commit fraud and why the threat of punishment alone doesn’t deter potential fraudsters


Definition of Fraud source Wikipedia

In law, fraud is deliberate deception to secure unfair or unlawful gain. Fraud is both a civil wrong (i.e., a fraud victim may sue the fraud perpetrator to avoid the fraud and/or recover monetary compensation) and a criminal wrong (i.e., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities). The purpose of fraud may be monetary gain or other benefits, such as obtaining a drivers license by way of false statements. A hoax is a distinct concept that involves deception without the intention of gain or of materially damaging or depriving the victim.

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Instructor Profile: Craig Taggart has almost a decade of experience in the fields of mergers and acquisitions and

business financing. Mr. Taggart works strategically with his clients to achieve the highest value for their business within the capital markets. His experience with BCC Capital Partners in the M&A industry has greatly contributed to his understanding of transaction structure, strategic

placement of buyers, and the attainment of maximum market value for his clients. He has represented and sold many businesses in a number of different industries and has significant experience working with companies in: continuing education, transportation, software and professional services. Mr. Taggart is currently working in the clean energy sector that covers multiple initiatives within M&A and corporate development.

He is a certified merger and acquisition advisor, accredited valuation analyst as well as an active member of Alliance of Mergers and Acquisition, and The National Association of Certified Valuators and Analysts (NACVA). Mr. Taggart has been a certified fraud examiner since 2011 and has owned an investigative franchise business, which focused on fraud based cases involving insurance, asset searches, surveillance, witness statements

He earned his MBA from the San Diego State University specializing in financial management. Mr. Taggart graduated from the California State University Northridge with a bachelor’s degree majoring in organizational psychology.


Agenda

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Why Should You Attend:The field of risk management has attracted increased mainstream attention in the wake of the economic meltdown as the public has begun to comprehend the negative effects of uncontained risk. Unfortunately, many risk management professionals tend to underestimate the role of fraud in the scope of their professional duties.


With organizations losing an estimated 5 percent of their annual revenues to fraud, the need for a strong anti-fraud stance and proactive, comprehensive approach to combating fraud is clear. As organizations increase their focus on fraud, they should take the opportunity to consider, enact and improve measures to detect, deter and prevent fraud. Without clear, defined objectives, a fraud risk management program cannot be effective.

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Common Fraud Schemes source FBI

Telemarketing Fraud Identity Theft Advance Fee Schemes Health Care Fraud / Health Insurance Fraud Redemption / Strawman / bond Fraud Nigerian Letter or “419” Fraud

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Whether in your individual role or in a team setting, you are taking on a process of determining current or future acts of fraud. The process at a larger organizational level or within a function, the fraud assessment process is basically the same. Here is the top down approach:

Review Business Objectives Review current assessed fraud & fraud categories Review core processes tied to the objectives Brainstorm fraud that can affect your organization

The Fraud Assessment Process

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Determine criteria or (possibility and impact) to develop ranking acts of fraud into critical, important and not important as it pertains to specific organization

Determine whether the controls in place are efficient and effective

Action plans and more testing where needed

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Corruption, embezzlement, fraud, these are all characteristics which exist everywhere. It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum. No one has ever eliminated any of that stuff.

Alan Greenspan former Chairman of the Federal Reserve of the United States from 1987 to 2006

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In this course, participants will: Learn how to set program objectives and define risk

appetite as the first step in building the program. Discuss the steps involved in developing a fraud risk

management program, as well as the program components necessary to fully manage the risk of fraud.

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Review risk management frameworks and will be introduced to the concept of fraud risk, including the factors that influence it.

Learn why businesses should manage fraud risk and who within the organization is responsible for this task.

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Learning Objectives: Identify, assess and manage fraud risks from all

sources and support fraud risk management initiatives by establishing an anti-fraud culture and promoting fraud awareness throughout the organization.

Be able to develop a system of internal controls to address the entity’s fraud risks and address and respond to any identified instances of fraud.

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Becoming familiar with common fraud schemes and risks

Identify fraud scenarios and schemes that threaten the organization

Identify red flags and encourage ethical corporate culture

Building a strong anti-fraud policy Promote fraud awareness to employees at all levels of

the organization

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Who Will Benefit: Bank and financial institution auditors Controllers and corporate managers Forensic and management accountants, accounts

payable and financial analysts Governance, risk management and compliance officers Internal and external auditors, CPAs and CAs Certified fraud examiners and other anti-fraud

professionals

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Techniques used for fraud detection fall into two primary classes: statistical techniques and artificial intelligence.[3] Examples of statistical data analysis techniques are:

Data preprocessing techniques for detection, validation, error correction, and filling up of missing or incorrect data.

Calculation of various statistical parameters such as averages, quantiles, performance metrics, probability distributions, and so on. For example, the averages may include average length of call, average number of calls per month and average delays in bill payment.

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Models and probability distributions of various business activities either in terms of various parameters or probability distributions.

Computing user profiles. Time-series analysis of time-dependent data. Clustering and classification to find patterns and associations

among groups of data. Matching algorithms to detect anomalies in the behavior of

transactions or users as compared to previously known models and profiles. Techniques are also needed to eliminate false alarms, estimate risks, and predict future of current transactions or users.

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THANK YOU FOR YOUR ATTENTION

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For more information on Live Webinars and any Other Training Requirements please email us [email protected] or Call us at this Toll Free Number: 1- 888-717-2436

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complianceonline ppt format 2015 developing an effective fraud risk management program 4.9.2015

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