Countering Fraud for Competitive Advantage: The Professional Approach to Reducing the Last Great Hidden Cost

4

The Resilience to Fraud

4.1 INTRODUCTION

In this chapter three key areas are considered. The first will be the structures operated by the state to counter fraud, such as the law enforcement community, the system of sanctions and the interest of political elites in fraud. These play a significant part in the overall resilience of a country to fraud. Also important are the strategies of organisations to counter fraud, such as the policy, the assessment of risks, the measures to reduce risks, the preventative measures, the quality of investigation, the sanctions applied, etc. This chapter will examine some of the research on organisational resilience to fraud and highlight some of the weaknesses. Finally it will bring together some of the findings from this and the previous chapters to produce a very early model on the major influences of fraud within an organisation. There is much more research and discussion to refine this further, but the authors argue that with more research and debate it will be possible one day to aspire to economic levels of modelling and predictive analysis within appropriate statistical levels of confidence. At the very least the model offers a basis for strategies to target the major influences of fraud, something which will then be developed in more depth in subsequent chapters.

4.2 NATIONAL RESILIENCE

The state infrastructure focused upon fraud is important in combatting the crime and also, to a varying extent, has an influence upon its level. The most ...