[Whitepaper] The Critical Role of HR Threat Assessments

By Lowers & Associates,

hr threat assessment whitepaper

Every day there are things that can go wrong in organizations. And sometimes they do, often taking an organization by total surprise. Assessing what threats exist from the HR perspective can give an organization a far greater chance to minimize and even prevent the potential loss. When unforeseen threats transform into a situation, the effect can ripple from those directly involved all the way out to customers or even beyond the organization’s operations altogether and into the realm of reputation.

“People are at the core of each major risk. If not as part of the problem, then as part of the solution.” — DELOITTE, 2012 REPORT

Understanding the threats and managing the associated risks are imperative at every level of an organization – because it’s the people (the human capital) who are supporting the organization at every level. Risks can present in different forms such as: complacency, turnover, occupational fraud, catastrophic workplace events, and negligent hiring and retention. In fact, human capital is one of the most pressing corporate risks, evidenced by its continuous presence on the Government Accountability Office (GAO)’s high risk list. Human capital risk should be on your radar too.

… Continue reading

16 Fraud Facts to Fuel Your 2016 Prevention Planning

By Lowers & Associates,

fraud week

As we look toward 2016, we thought it might be useful to get a quick big picture on organizational fraud for context. We have been posting about the causal factors driving fraud and urging you to develop an effective risk-based prevention program. Now, here’s the why: 16 facts about fraud drawn from the 2014 ACFE Report to the Nations that should make it relevant to you. … Continue reading

Organizational Fraud: The Motivation to Steal

By Lowers & Associates,

fraud week

Ordinary people can do extraordinary things, including committing fraud. The question is, what motivates an ordinary person to morph into a fraudster?

“Pressure,” or motivation, is one of the three causal factors of Donald Cressey’s Fraud Triangle, along with opportunity and rationalization. A quick summary of the theory is that a person commits fraud when under difficult or threatening personal circumstances (pressure) and he or she has access to a valuable target for personal gain (opportunity) that they can justify internally (rationalization).

The pressure factor in fraud risk is idiosyncratic and dynamic. Individuals’ circumstances are as highly varied as their perceptions and reactions are to them. The main thing is that the propensity for fraud emerges when a person’s circumstances create perceived pressure that leads him or her to exploit an opportunity when it appears. In other words, every person in every organization has the potential to commit fraud under the right combination of circumstances. … Continue reading

5 Principles of Effective Fraud Risk Management

By Lowers & Associates,

fraud week

As part of the annual fraud awareness week, we wanted to bring you a quick summary of the principles of fraud risk management. These points are based on an extensive review titled Managing the Business Risk of Fraud: A Practical Guide.

As the Practical Guide emphasizes, “An organization should strive for a structured as opposed to a haphazard approach.” The Guide is a good place to start developing a fraud prevention and detection program as part of your overall risk management efforts (or structuring a review of an existing program). But as always, diving into the details of organizing and implementing a program like this requires significant effort. Skipping steps or making assumptions about risks and mitigation practices without systematic assessment will often lead to gaps or weaknesses in the plan. … Continue reading

Data Analytics as a “Survival Strategy” for Fraud Control

By Mark Lowers,

Big Data is becoming a resource in the fraud fighter’s arsenal as more companies are using data analytic software to look for anomalous patterns in internal data. This method has helped some companies monitor more data sources, cutting the time for detection and reducing the costs of fraud.

A recent post by Peter Goldmann of ACFE reports on the rate of adoption of data analytic technology, finding that the largest group is companies that have no data analysis program at all (almost 30%–see the bar graph). … Continue reading

  Category: Fraud Prevention
  Comments: Comments Off on Data Analytics as a “Survival Strategy” for Fraud Control