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Fraud Awareness Training for Employees and Management

Not only academic studies, but also many sources from commercial practice stress the fundamental importance of the sensibilization of management and employees to fraud risks. Despite this, less that 20 percent of German companies take advantage of this preventative measure. And where training does take place, it is often just for the management and not the employees.

The benefits of fraud awareness training are many and varied, for example:

  • Addressing the topic of economic criminality and highlighting the dimensions and consequences of fraud in companies increases awareness and stimulates discussion on the subject
  • Employee sensibility toward ethical values is heightened
  • The legal boundaries of acceptable employee conduct are set out
  • Employees learn why internal control is necessary and develop a better understanding of internal rules and regulations (code of ethics, code of conduct)
  • Employees learn to recognize both indications of fraudulent activity and the vulnerable areas within the organization
  • The necessity for active employee involvement in the fraud management process is conveyed
  • The tendency for employees to tolerate fraudulent activities by others is reduced
  • It is possible to convey to employees the reasoning behind instruments such as whistleblower hotlines as well as their purpose, mode of operation and limitations
  • When combined with a self-assessment, fraud awareness training can often produce a lot of valuable information that can be used to make wide-ranging improvements within the organization

In order to obtain the maximum benefit from such training, the following preparatory measures are especially recommended:

  • Gathering information on past cases of fraud (case details, losses, fraud pattern, etc.)
  • Conducting a fraud due diligence audit to find the areas particularly at risk (risk zones) and the inherent loss potential
  • Compiling internal guidelines and rules of conduct
  • Identifying relevant laws and external regulations
  • Implementing individual anti-fraud measures and instruments
  • Implementing a fraud management system

In view of the wide range of benefits that can be gained from fraud awareness training, it does still make sense (although it is not optimal) to go ahead even without having made the above preparations.

The AuditFactory can help you conduct fraud awareness training. You can:

  • outsource the job of carrying out the preparations to us or engage us as a partner for this purpose, and/or
  • engage us to carry out the fraud awareness training itself.