Corporate fraud and incident management

What is the correct way to respond to an allegation of serious corporate fraud? Bill Waite, Head of Corporate Investigations and General Counsel at The Risk Advisory Group, outlines clearly the factors that must be considered and the choices to be weighed.

Bill Waite can be reached at The Risk Advisory Group Ltd, Russell Square House, 10-12 Russell Square London WC1B 5EH;tel: +44 (0) 20 7578 0000; www.riskadvisory.net.

Fraud is not a new issue. It has been on the corporate agenda for at least a decade. However, recent reports indicate that it remains a severe headache for modern business with many of the most serious frauds committed by employees who have been with their firm for more than five years. The problem is not restricted to cash and other tangible assets. The sale of confidential information, whether it be related to research and development, corporate expansion or investment strategy, procurement or the security arrangements of the corporation itself, all have a real value, a value that employees are increasingly ready, willing and able to realise.