Managing the Risk of Fraud and Misconduct

Morgan O'Rourke


April 1, 2011

book-fraudThe business world is no stranger to fraud and misconduct, and the last decade has been no exception. It was a 10-year span bookended by financial reporting scandals that gave rise to reforms like Sarbanes-Oxley on one end and by an economic downturn that led to Dodd-Frank on the other. But despite the increased attention on fraud, the issue remains a significant concern for most businesses. And with increasing globalization and technological growth, the risk factors for fraud and misconduct will only become more pronounced.

With that in mind, Richard Girgenti and Timothy Hedley of KPMG's forensic practice have put together an executive-level guide to detecting, preventing and responding to fraud and misconduct risks. The book is organized into four parts: understanding fraud, whether it involves asset misappropriation or financial reporting errors; understanding other forms of misconduct and illegal activity, such as bribery, money laundering and insider trading; creating an effective compliance program; and developing a risk management and response strategy to mitigate these threats.

The book provides insight, case studies, practical advice and real-world solutions from a wide range of industry experts who seemingly cover every aspect of fraud. This comprehensive approach makes Managing the Risk of Fraud and Misconduct the definitive authority on this important business issue -- the fraud risk management bible, if you will. And throughout it all, the authors stress the ever-growing importance of integrity in business.

"High-performance companies not only will adhere to the letter of the law and adopt appropriate risk controls and ethical standards but, just as importantly, will also create a corporate culture of integrity where there is mutual trust among employees and management that each will do the right thing in the right way," writes Girgenti. And it is by creating this kind of environment, in which fraud and misconduct are not tolerated, that organizations can achieve lasting success.

Morgan O’Rourke is editor in chief of Risk Management and director of publications for the Risk & Insurance Management Society, Inc. (RIMS)