ForThoughts Edition 12: Corporate Resiliency
Issues in forensic accounting
It is no exaggeration to say the qualities associated with fraud — secrecy, deception and the destruction of value — are the polar opposites of the qualities often considered essential for success in today’s markets: transparency, candor and the creation of value.
Although the 21st century global economy brings cheaper sources of supply and huge new markets, it also exposes companies to much greater risks and consequences of fraud and corruption. As a result of greater enforcement around the world, global media attention and changing attitudes of consumers, fraud and corruption can now cost companies billions and destroy or severely damage reputations.
In a new book, "Corporate Resiliency: Managing the Growing Risk of Fraud and Corruption," the Deloitte Forensic Center’s authors suggest that this scenario can make many companies more vulnerable to serious loss.
Mark Califano, head of Litigation for GE Capital, observes in his foreword to the book:
- The time needed to investigate a single cross-border matter has now shrunk from years to weeks. Simultaneous raids of corporate offices in multiple countries are no longer unusual events. Multiple fines and sanctions, levied as on a single company, regularly exceed hundreds of millions of dollars and can wipe out a year’s worth of profits with the swipe of a pen
- What the authors demonstrate is…a strategy that can be successfully applied by you and your company and that can reap real bottom-line benefits for the organization
The book outlines a business case for boards and senior executives to adopt a fraud and corruption risk management strategy that can reduce vulnerability while increasing the ability to bounce back if fraud or corruption occurs.
Want to learn more? Read more about the book and download Chapter 1.
As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.