As a leading provider of Global Investigative Services, clients rely on Duff & Phelps to help them prevent, detect and respond to suspected fraud situations. Our professionals have significant experience in financial and corporate investigations, due diligence and business intelligence.The incidence of corporate fraud continues to increase. Fueled by globalization and digitalization, corporations are struggling to swiftly respond to ever-evolving and sophisticated threats from around the globe. While corporate investment in IT security is correspondingly rising, this investment must be supported by enhanced levels of fraud risk awareness. Corporate officers and directors must be mindful of the potential for personal liability, government sanctions, and litigation and undertake the necessary precautions to reduce their exposure.
Our fraud prevention services help our clients identify fraud risks, reduce exposure and advance corporate integrity. We partner the expertise of Duff & Phelps’ professionals with our client’s senior operational and legal management. This partnering assures that services are customized to address significant fraud risks consistent with the legal and regulatory requirements of the client’s industry and geographic markets. We target specific concerns, new regulations and current government enforcement actions.
Duff & Phelps’ fraud prevention approach consists of three phases:
The risk assessment process includes risk identification, severity analysis and response. It typically begins with discussions with management about the organization’s objectives, significant business units, locations, processes and accounts. The Duff & Phelps’ team of subject matter experts assists management to:
- Identify inherent risks factors, schemes, scenarios and potential perpetrators. Duff & Phelps often employs sophisticated predictive analytical tools to support this process
- Inventory and categorize the risks
- Rate the magnitude of the risks in terms of likelihood and significance of occurrence. Duff & Phelps typically interviews business process owners at this stage
- Aid management, as requested, in determining the company’s tolerance for the different types of risks identified
- Aid management, as requested, in developing policies to reject, transfer or manage these risks
Controls Design & Implementation
In accordance with the client’s overall risk tolerance, Duff & Phelps’ professionals evaluate existing fraud controls and design other control activities to address any residual risks. The Duff & Phelps’ team can work to:
- Link prioritized fraud risks to existing mitigating controls and resources.
- Identify any gaps or weaknesses in controls.
- Evaluate the operating effectiveness of the existing fraud controls.
- Design and implement controls to address any gaps or operational problems. These controls can be at the entity level, such as an ethics hotline, or business process or technologyspecific, such as computer system access controls.
Effective fraud prevention requires Board of Directors oversight and management reporting. Periodic external performance assessments assist to identify new risks, evaluate operating effectiveness of existing key controls, detect overrides, and deter future fraud activity. Such monitoring allows an organization to build on areas of success and quickly address areas of weakness. Our team of experts at Duff & Phelps can develop an appropriate oversight process and provide external monitoring services. We can provide periodic assessments on a standalone basis or as part of an overall fraud prevention program.