The Human Factor: Corporate Integrity Matters

No matter what you envision – there is a specific moment when you realise – we all need allies.

Have you every thought about who you allies are? How they became your allies? Or maybe who could be my allies to have the impact you want to have?

It is very interesting to see how these allies also transform over the time and depending on your and their vision to accomplish.

The next minutes are spent for all these existing and future allies supporting us on our vision of having impact in your specific field of expertise.

And of course – when it comes to Corporate Integrity, allies are as important as in any other area.

Are they harder to find? It depends!

The energy spent on not being surrounded with the allies we need to ensure the impact we envision is constraining.

What I see in my daily work with Non-Executive Board members, management teams or individuals outlines the importance.

The right set of allies are so crucial for every leader. We have now the skills and where we find the allies and come to the last point of how to make it work.

Building a community of allies is not new

Important is the aspect of that “community”.

And just as a side note: that is also what I see in our leadership circle. Often it is not the professional topic which is the most powerful element of the discussions.

It is the like-minded community of trust. And here we are already having the first two critical elements or skills of an ally:

1. Like-minded
2. Trust

First, we want to understand what the mind-set is and align whether that matches with ours.

No matter what professional background someone brings in. If the mind-set does not match, it is hardly possible to be come a partner in crime. Trust follows and can not be forced. The more is visible and transparent from a person the better trust can be built.

To become the ally you need - you do good in being transparent about

1. values,
2. risk-appetite
3. perspective
4. vision and goal
5. your limitations

The second element when it comes to identifying allies is the question, where do I find them?

As mentioned at the very beginning it is important to understand that the perfect match depends on the vision or goal to be achieved.

The most powerful alliances are the ones set up with the right mind-set, values, a very high level of integrity, and trust.

We have now the skills and where we find the allies and come to the last point of how to make it work.

The most powerful alliances are the ones set up with the right mind-set, values, a very high level of integrity, and trust.

KEY MESSAGES

Reflecting on by what allies am I surrounded and to whom I could become an ally is very important.

Especially when it comes to Corporate Integrity, I realized over the last decades that there are so many leaders following that vision of conducting business in a way which support ethics and integrity.

A lot of leaders do not find their allies within their organisation when it comes to Corporate Integrity.

With the global initiatives of ESG and SDG the pressure increases, and we all do good to know our allies to achieve our goal with impact.

EPISODES' REFLECTION

Just two additional questions for a personal reflection – I am pretty sure you all have an answer for yourself:

- Are you aware of all the alliances you are involved in?

- And do you give and receive the support which is needed to make it a success?

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on

www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

There isn’t anybody else understanding your business model better than you and your team. Correct?

What kind of insights would you receive if the business model would be analysed from a completely different perspective? For example, focusing what could harm the successful implementation of your vision.

Identifying the core sectors of your business model when it comes to protect the most valuable assets. And especially your vision. That is what I would like to invite you to.

Bringing in a new perspective when it comes to challenging the business model is key in our work as Non-Executive Board members as well as in the management. And thus, before the risks are materialized.

Afterwards -when the investigators are doing their job the business model is one of the most important sources during the fact-finding process.

Not all responsible are aware of and sensitised – and that is a fact we must consider in our roles.

Therefore, I am convinced that a deep understanding of the business model with its inherent risk is key for everybody taking his or her role of responsibility seriously.

When it comes to the topic of risk identification process the common understanding is often very allocated to specific functions like compliance and risk management.

That is just one approach and, in my opinion, not the most effective for an organisation which wants to play in the league of “best in class”.

Bringing the risk identification mindset a few levels up – to the executive management and board of directors – the effectiveness increases dramatically.

And not only that: it also allows the executing team to have a real set of boundaries when it comes to risk tolerance.

Identify the risks in your business model

To start with there are 2 dimensions I defined for each key section of the business model

1. Strategic Risk
2. Operational Risk

And for each of the identified risk the

1. Impact
2. Likelihood

The board of directors will have a discussion and opinion on the risk appetite before the management will come up with the defined "Measurements".

The goal will be to have the answers by section of the business model.

Using the described risk canva as an example I suggest starting with the following key areas

1. Value proposition: what is the value we are creating for our clients by doing xyz? Already the value proposition will give answers to the strategic and operational risks.
2. Key activities: what are we doing to reach the value proposition for our clients?
3. What are the key resources we need to conduct our activities?
4. With which key partners are we or will we work together to make our vision come true and following the strategy? And here, please be careful with the key partners due diligence and keep in mind, that the code of conduct also needs to be followed by them. Not to forget the third-party due diligence you do in advance of a partnership.

Other areas to consider as source to identify your risks rather belong to the customers itself by

1. analysing the segments you serve and
2. how you establish and execute the customer relationship.

In our world which operates in the cyber territory as well as in the offline world also your organisation will be active on different channels.

What are these different channels and what kind of inherent risks evolve? The adaptability is often not yet given and the awareness – also when it comes to internal communication – can be improved.

Last but not least two key areas which are not new and an evergreen since thousands of years in doing business

1. the Cost structure and
2. the revenue streams

revenue streams these days and especially within the adapted business models vary and become more diverse than ever before.

New business models create new inherent risks – which means the upside and the downside. Would you like to miss an upside? No! Nor a downside!

The goal must be to manage the risk. And that is only possible by knowing them in advance and not after materialization.

KEY MESSAGES

And by saying that a structure helps to identify and understand the inherent risks. Which have always two sides of a coin. An upside and a downside.

With using a systematic tool to analyse the business model the entire risk identification process becomes a much more effective and efficient process.

EPISODES' REFLECTION

First part would be to reflect on the business model and especially how the structure of the business model is set up. Here I recommend using a form which supports the vision. My experience is that any kind of canva – and here you are free what to use – is helpful to get the thinking process structured.

In a next step the different sections need to be challenged by identifying the strategic and operational risks – as a first step.

Reflect whether such process is set up and whether there are potential improvements needed.

Keep in mind that the identification process is an exercise which needs to be done by the risk owner at the highest levels. The board of directors and the management team.

When it comes to likelihood and impact the discussion will be held by the same roles.

But – and here is something which is often avoided: the discussion about the risk appetite needs to be done on the Board of Directors level. The implementation will be done by the management team.

I know that is a lot of homework and not be done in a day, but my goal is to start the process and I am sure you will be successful in having that discussion in your designated teams too!

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

When we talk about cyber security, this includes protection in the social structures of the Internet.

It is about protecting people from the violation of physical or mental integrity. Accordingly, security is a broader view than crime. Cybersecurity encompasses more than cybercrime.

“The absence of security begins where an individual suffers harm or is likely to suffer harm.”

Violation of physical or mental integrity

The interpretation of the violation of physical or mental integrity of individuals requires a more flexible approach.

If we focus exclusively on individuals, we miss out on those behaviours that are directed against organizations, companies, or society.

My clients are, of course, individuals and usually part of an organization or company. Always also a member of society.

Examples of these are

1. illegal transactions and
2. the creation of criminal structures involving the underworld and legitimate economic activity (money laundering via activities on the Internet).

These are the so-called victimless offences.

Which is indirectly not true as the price and impact of money laundering is high – for the entire world and that is going to be another story and episode of the future.

I also recognise that the terms cyber security and cyber crime needs more focus when it comes to the terms and definitions.

Cyber security versus cyber crime

Although cyber security encompasses more than cybercrime, the latter plays an important role in cyber security.

There are various definitions of cybercrime in circulation, but no single one which all agree on. Nor is there an official conceptual framework for this type of crime.

Because the pattern of cyber crime are key to be understood like we do with the patterns of other fraud cases.

Terminologies and categorizations

We also work with different terminologies and categorizations, with the following features becoming apparent:

There are offences with which ICT (Information and Communication Technology)

a) constitutes the end and tools (hacking, spreading viruses)

b) is executive but not the aim (e-fraud, distribution of forbidden content)

In conclusion, cybercrime can be understood as an overarching concept for offences in which ICT plays an essential role.

The two subcategories to be derived are cybercrime in the

– in the narrower sense, using ICT as an end and means

– other senses, with which ICT is responsible for the execution but is not the goal

What is the difference between the responsibility of ICT in the execution or the use of ICT as a tool?

When ICT is used exclusively as a tool, we are not usually talking about cybercrime.

For example, when a criminal uses Google Map (or other electronical provider of maps) to find the petrol station for his next robbery.

The term cybercrime is used for those crimes that use ICT as a target and a means.

Cybercrime in the broader sense will disappear to exist over time, as it is only the modus operandi of how an offence has been committed. The term cybercrime is neither used to explain a criminological classification of the field of study nor to define the technical procedures for committing the offence.

Even criminal prosecution does not need this term for the punishment of the offences, despite the Internet age. In this respect, the term “cybercrime” does not clarify anything - officially.

Offences should not be named according to the territory used (in our case here: cyber).

This would otherwise mean that with every new technology or the use of tools to commit a crime, the taxonomy of crime would change.

This means that we should understand the social relevance of information technology not from the technology itself, but from the social processes on which the technology is based on.

Even if computers are used – an (economic) crime is an (economic) crime. The focus from the means and tools used to the offence is relevant for the successful processing of (cyber-)crime.

“The excessive focus on technology blocks the view of social reality.”

KEY MESSAGES

Treating the territories as what they are is needed.

We must ask ourselves whether we are prepared to it or not. No matter if we are already traveling to this territory for a while. Some of us do it for more than two or three decades.

EPISODES' REFLECTION

I would like to invite you to the following take-home reflection in the form of a few questions:

1. How does the territory I travel to look like?
2. What are the requirements to have a safe experience?
3. Which on these requirements are in place and which not?

It might sound easy but do not underestimate the impact of these answers.

Having involved the decision-makers which means the board, the management and the experts will complete the picture of the actual planned strategy and journey.

The implementation will be an ongoing process as the territory will evolves and therefore the last question is the one to secure your business:

1. What are the measurements to be taken to protect and secure our vision?

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

Raising awareness – also when it comes to topics like biases – is where everything starts. Without being aware of xyz no transformation can happen.

Therefore, I am convinced that with your personal awareness of being biased the protection already starts.

And if you extend it to your team, your organisation, you have a powerful tool at hand which is understood and supported. That is what you need to secure your most precious assets.

When it comes to social engineering there is that common myth of putting the term to the tech side and forget.

But it is everything else than tech. It is just us. Our human being!

Crisis shifts priorities

A shift in priorities during times of crisis is necessary. We all agree on that!

Reassessments must be made, and the focus is on the ability to act. While those responsible are organising themselves, others are doing the same on organizational level.

Especially in the area of fraud and cyber risks, adaptation to new circumstances rarely takes long. Often too long in my opinion and the reasons are manifold.

On the contrary. And that is the most important part of us to protect our most precious assets.

The scheming of the malicious social engineers does not stop at global crises but discover them as an entry point to prey that was often not on the agenda before.

I mentioned at the very beginning: Social Engineers love crises! Of course especially the malicious.

Fact is when a crisis hits: Either there were already prevention measurements in place or nothing will happen during the ongoing crisis.

During the crises, the resources will be allocated to Business Continuity Management which means, managing the impact of the crisis as such.

While the responsible – Board of Directors included – focus on the above-mentioned duties, the vulnerability of non-compliance, economic- and cybercrime increases. Silently.

When it comes to the fraud risk assessment we have to keep in mind and refresh, that there are different stages organisations are related to a fraud risk assessment:

Either it is

1. Missing
2. Not effective anymore
3. Or Biased

You will know mention that there is a fourth category missing, the one which has a perfect implemented fraud-risk-assessment in place. Yes, you are right.

The experience taught me that in crisis these “well matured” fraud-risk-assessments immediately shift to No. 3 and I will tell you more about it in a few minutes.

None of the three categories will succeed against fraudulent behaviours but due to different reasons.

Let me give you as an overview and especially more beef to what these three categories means:

Three Categories of Fraud Risk Assessment Status when we hit a crisis

The first one is obvious:

Category 1: A Fraud Risk Assessment is missing

Without having a Fraud Risk Assessment in place, the potential risk is not identified at all. As the responsible know about the circumstance and do not trust on an existing assessment.

The vulnerability is very high or low – we just do not know about it. Impact and Likelihood of fraud is not assessed nor under control. Not managed at all

Category 2: The existing Fraud Risk assessment was made more than 5 years ago

With having a Fraud Risk Assessment done – even a long time ago – responsible feel safe.

Unfortunately, what I see in discussion with my clients – too safe. Wrongfully. There is hardly safety in an old risk landscape nor in in an old Fraud Risk Assessment.

Understanding how technology and business models changed over the last years and months, it is obvious that also the risks changed dramatically.

An not updated Fraud Risk Assessment provides a false security.

Category 3: The Fraud Risk Assessment is less than 12 months old

Talking to the last category of organisations might be the hardest because they have a brand new – in their mind – Fraud Risk Assessment.

But having heard what was mentioned for category 2, most of it also works for category three.

With additional challenge that having had the assessment within such a short time frame will mislead the awareness of security.

The crisis which hit the organisation needs to be understood to ensure that potential new risks can be taken up. When the Fraud Risk Assessment is still new it does not mean that the new risks are already involved. Taking the COVID-19 pandemic as an example I assume that hardly any organization expected – before the crisis hit – to have the “work from home” percentages increased to the max.

In short, all three categories face the challenge of either having loose ends related to the fraud risk assessment or nothing in place.

In addition to that, what a lot of the companies still do not yet have in place is the crisis scenarios. The preparation for such incidents is not done. Specific controls designed for the incident handling processes are often be dropped, and hence, the opportunity to defraud the organization increases significantly during crises.

KEY MESSAGES

Fraud vulnerability can significantly be decreased by raising the awareness of biases, social engineering, and risk-intelligence.

No matter at what stage we are with our organisation, crises are happening and when we wait until the next one hits us, we are not prepared.

When we use the time before and after, the vulnerability receives the necessary attention.

EPISODES' REFLECTION

How you strengthen non-compliance and fraud resilience to a competitive advantage?

Even during crises I would like to invite you to reflect on the following three questions which can be taken as you “take to the office assignment” and also used within your team – which is not only related to non-compliance, economic or cybercrime

1. What is the actual status of the above-mentioned categories?
2. What would immediately reduce your vulnerability?
3. Where are the resources who could have the first impact on this reduction?

Why not having an internal virtual challenge identifying the weak spots? Of course, please make sure that you communicate in a setup which is safe for the organization too.

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

We cannot deny the changes and additional requirements. Therefore, I am convinced that it needs some reflection and review of the investigations process too.

The use cases and examples of the last few months demonstrated a wide variety of maturity level of the teams conducting investigations.

And by saying that, these different set-ups and processes were raised by one of the peers of the Corporate Integrity Circle a few weeks ago.

It became obvious how different the maturity levels are in terms of

1. Team set up
2. Investments done or especially hold back (in the ongoing financial year)
3. Missing budgets for the future
4. Lack of training opportunities

With the knowledge we all earned – which is supported by different studies – it is crucial that the have process and tools in place which supports us on our mission of fighting against fraud and bringing facts to the table.

Professional and adapted to the individual investigation processes are much more effective for all involved parties than ad-hoc. And that is, was we need to have for our internal and external clients.

Therefore, we need a high maturity level of adaptability – also when it comes to our own investigation processes.

And here I come back what I have prayed for so many years and still believe in: Internal Investigations need a sponsor!

This does not mean that the sponsor must be directly involved but should understand the importance and stand in for it.

If you reflect your situation

1. Are you a sponsor when it comes to internal investigations?

Or if you are the one responsible for the investigations:

1. Do you have a sponsor? And if so: how effective is it and what could be improved?

Especially during crises which are not inherently fraud or non-compliance incidents it is even more important to have such a sponsorship on top level.

Because, as we have learned, with an external crisis like the pandemic, the focus shifts away. The additional risks based on the new situation are often overseen.

Planning

With the Investigation planning we have the two level

1. Strategical
2. Operational

Switching to a complete remote planning process will need additional time spent on the set-up as such.

Some of the most important aspects are:

Information and Data channels

1. How can we ensure that the entire team are informed?
2. What is the internal protected and secured platform to share internal information?
3. Do we have a project management tool in place – of course protected and secured – which fulfils the needs of the remote work?

I would expect that most of the global investigation teams already have most of the above tools in place.

What it often needs is to really use it. This means, everybody has to commit to use the identified and implemented tools with the dedicated functionalities. With incomplete information an effective investigation management is not possible.

Setting up the workflows for remote team need even more discipline from all the involved parties.

Investigation teams:

1. are they already used to work remotely?
2. Do we have new members or ones not used to work remotly? How can we integrate them?

Goal must be, that the teaming receives most attention – especially in this kick-off and planning phase

Technology and infrastructure:

1. How is the actual set-up?

The highest security level is not discussable at all and for the teams already working remotely “state of the art”.

1. What is needed in addition and how fast could that be delivered?

I know the time of ordering and receiving hard - and software was not an issue up to March 2020. But these days it could be crucial

Data collection:

We all know that there are certain data we must collect during an investigation which are not all just electronically available. I am talking about the images we need to have from specific devices. Like notebooks, desktops and mobile devices.

1. What is the process to obtain this important confidential information with as less as possible physical interactions?
2. Are there different levels which could be set up to a standardized process?

For the eDiscovery process I would not expect a big pivot to the normal workflow we already have in process.

Also the review and report writing process – if the workflows with the team and information exchange are well implemented – can be conducted as the investigators are used to.

Interviews:

Yes, here we have to get in touch with people to find additional evidence and information supporting the entire investigation.

We all learned how to perform during virtual meetings via tools using cameras and microphones. Of course, documents can be uploaded and shared between the parties.

But for a professional interview where it is necessary to observe the interviewees’ reaction and assess the credibility of those – verbally and non-verbally – physical interview should still be the preferred options.

It makes a difference when the environment, setting, sound and paces as well as the demonstration of data can be used to find the answers. The interaction between interviewees and interviewer often let the entire investigation move a big step forward.

So please, be careful when you plan the interviews. Rather wait – if possible – instead of having all interviews done remotely.

KEY MESSAGES

A lot of teams in our industry easily adapted to the new circumstances. Some of them did not even have to as they also conduct global investigation in a remote setting for years.

Others are still on their way and with the before-mentioned key elements of

1. Data / Information channels
2. Team
3. Technique & Infrastructure
4. As well as with the last but most important discipline of
5. Interviews

I am convinced that the necessary maturity level can be achieved. For all of us.

EPISODES' REFLECTION

Without a team which exactly knows about the new process, the expectations and tools available – your investigation will not be successful.

Same for the interviews: Here you have the biggest leverage to find the smoking gun. The interaction between humans.

Of course supported by technology.

Let me come back to the questions which could be used for you to analyse the current situation about the sponsorship for internal investigations:

1. Are you a sponsor when it comes to internal investigations?

Or if you are the one responsible for the investigations:

1. Do you have a sponsor? And if so: how effective is it and what could be improved?

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

I would like to focus on three aspects how the fraud industry was and is affected by the pandemic

1. Fraud Risks
2. Anti-Fraud Programs
3. Investigations

Fraud Risks

When it comes to the question how the pandemic affected the different risks of becoming a victim there were different areas to be taken up

1. How was the risk landscape and risk management setup “before”?
2. How did the landscape change?
3. Where do we expect the journey to go?

If there is no existing risk mapping the change can not be measured. We then only talk about the gut feeling but have no evidence.

What I have seen at my clients cases is that not only the cases of social engineering in the territory of cyber increases, but also in the non-digital world. On an overall basis the risk of becoming a victim of social engineering increased significantly.

And compared to the study from the ACFE it is exactly what also my colleagues experienced. The overall fraud level increased and will also increase within the next 12 months, that is what we all expect.

In addition to that 50% of the participants already see that cyber fraud increased and the expectations go into the same direction.

Cyber fraud will not remain the only fraud pattern.

1. Identity theft
2. Payment fraud
3. Bankruptcy and Unemployment fraud (and here we talk about the social insurance fraud, credit fraud, etc.)
4. Fraud by vendors and sellers

As well as

1. Health care fraud
2. Insurance Fraud
3. Loan and bank fraud

Plus the evergreen: Bribery and corruption

will affect our organisations more in the future than ever in the past.

So, what does that mean to us? I am convinced, if you are listening to this podcast, you have a high maturity level of integrity.

Important is, that you are not the only lone enthusiast doing so in your organisation.

You will have much more power if corporate integrity is a strategic priority and not just a “compliance task”.

Summarizing how Covid-19 has impacted the fraud patterns we in our industry experienced and expect additional increases.

With that knowledge I would expect from the decision-makers that actions and measurements are set up….

Anti-fraud programs

The normal process of preventing, detecting and responding to fraud does in real life not start with preventing in a way which could be called “effective prevention”.

More often it starts with responding as a victim.

With the evidence gained in the industry and published we would know that the fraud cases increased and increase. Wouldn’t we expect to have an increase in the anti-fraud program resources too?

Less than 15% will significantly increase their overall investment into the anti-fraud resources. Less than 30% will slightly increase the spending.

With these two first areas I would like to give you the food for thought of the take home assignment. The following two questions should challenge either your clients or your companies actual set up

How does our risk landscape look like since the pandemic started with regard to the above mentioned fraud risks of

1. Cyber fraud
2. Identity theft
3. Payment fraud
4. Bankruptcy
5. Unemployment fraud
6. Fraud by vendors and sellers
7. Health care fraud
8. Insurance Fraud
9. Loan and bank fraud
10. Bribery and Corruption

How are the investments in our anti-fraud program reflect the answer of the first question?

Having an answer on these two questions will give a good understanding of what you can expect from the near future related to your fraud risk…

Last but not least I would like to share with you the

Challenges as an investigator

It is not a secret that the work – not only in the fraud industry – changed. Also for the one which have to conduct investigations.

During an investigation we have several different phases but there a quite a few where – in the past – physical meetings were required. Especially when we think about our global cases which also needed a certain amount of traveling.

Our involved parties are often not at the same locations. Not the ones we have internally nor the external ones.

The coordination of the teams as well as the other involved parties changed and requires additional technique involved.

In our cases, the data storage as such to conduct the investigations was not an issue as we have centralized servers.

But one of the key challenges was that the direct exchange within the team was not possible as we were used to it. Normally we have different teams working together in their own room to ensure that the knowledge can be shared. Now we had to set it up virtually.

The same for our interview process. Interviews are one of the key elements we conduct for our clients. With the new virtual set up it was necessary to train all our team members as it needs additional skill sets to perform virtual interviews.

More than 75% of the global peer group also replied that the work as such became more difficult.

I think it is not difficult as such but requires adapted process and new training of all involved parties in the team.

KEY MESSAGES

The more adaptive we are the more exciting and successful it can be – and vice versa.

What I asked in our team – and maybe this is also a question which could be brought up in your environment:

“What is your adaption maturity level?”

I used a scale from 1 to 10. 10 means “I am very adaptive”

And with mentioning a number also the example – not older than 2 years – was mentioned.

You can imagine that already the question itself made it possible to shift the perspective….

My personal conclusion of what changed in our industry is quite simple: Everything and nothing!

Our clients and also our team went through a valuable journey and I am convinced, your team, your clients and yourself too.

EPISODES' REFLECTION

How does our risk landscape look like since the pandemic started with regard to the above mentioned fraud risks of

1. Cyber fraud
2. Identity theft
3. Payment fraud
4. Bankruptcy
5. Unemployment fraud
6. Fraud by vendors and sellers
7. Health care fraud
8. Insurance Fraud
9. Loan and bank fraud
10. Bribery and Corruption

How are the investments in our anti-fraud program reflect the answer of the first question?

IMPORTANT LINKS AND MENTIONS

https://www.acfe.com/covidreport.aspx

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

The ability to change perspectives – not only when it comes to risk – is crucial for business leaders.

As initially mentioned, I will introduce three perspectives to identify risks.

This means only three and not all the six we have for example in our toolbox called “Personal Risk Area Identifier”

Starting with three will give you - and hopefully also your team – enough food for thought in a first step.

I prefer getting things implemented and done versus teaching and preaching complex frameworks which nobody ever want to have implemented in the organisation.

This means for today, that we immediately start with the work on the different perspectives and elaborate from there.

Let us choose the three perspectives to start with

1. Having you here in my business podcast I assume you all have a professional role on a certain level. Either you are an employee, manager, executive or board member. If you have several roles: choose one. That is your Individual Business Role

2. As second perspective I would like you to choose on your role you have withing “friends and family”. You may be a parent, a child, a friend, a sibling, etc.

3. And as the third role you closely stay with you as an individual. Not in the roles we described above, not as part of another system, just you.

These three perspectives are always within us. No matter with whom you are working in teams.

It remains unspoken which of the perspective is taking the lead in the decision-making process. Depending on the setting you provide, it is possible to lead it.

As an example, I have prepared a few questions which should be answered from different perspectives.

The situation I want you to be taken is Cyber Attack as the overall risk.

With the three perspectives in mind, you can for each answering the following questions:

1) What are the planned activities which could be harmed?

2) What would be biggest risks derived from the answer before?

3) Which are the effective scenarios to mitigate the risk?

4) By when are measurements effective?

With these four questions about activities, risks, scenarios, and measurements you immediately identify the risks for each perspective.

EPISODES' REFLECTION

Remember the three roles

- Professional

- Friends & Family

- And individual

And then keep at least two of the following four questions in mind

- Activities planned

- Biggest risk

- Scenarios to mitigate

- Measurements implemented by when

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

Risks are managed differently. Some of them can be managed by a vaccination. Others not.

Fraud, economic crime, cyber-attacks, and non-compliance are risks which are not possible to be managed by a vaccination.

For the time being….

Board of directors are not only responsible for overseeing management strategy, but also, for their risks management which is significant in these fast-evolving times – especially under the actual circumstances of the global crisis.

The Pharma industry produces the vaccination against COVID-19.

All great. For cyber-, non-compliance and fraud-risks there will never be a vaccination.

Nor are we ever becoming immune to these risks! And that needs to be considered in our responsibilities. Immunity will never be achieved.

Keep your own risk-intelligence in mind when I lead you through the following different key areas to focus on

- Risk DNA

- Competition

- Expectation

Combining the understanding of

- the Risk DNA with

- the potential competitive advantage and

- fulfilling the expectation of the shareholdings and stakeholders

might sounds to be a huge challenge but can be started with the three questions for reflection

- How are we internally categorize the different risk to ensure specific risk DNA?

- What are the competition drivers within our organisation and how do they impact the risk landscape?

- How do fulfil the expectations regarding the mentioned risk?

EPISODES' REFLECTION

How could the governance look like taking the critical risk of fraud, non-compliance and cyber at a level higher and treat it more strategically?

Business models change rapidly and the pressure to keep up to speed increases too.

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

I am convinced that an implemented code of conduct is essential to set the framework on what we do how. No matter what form such a code has.

Bringing up the topic “code of conduct” is often misunderstood as an additional regulatory paper created by one not understanding the business.

We call it code of conduct (CoC) - this meaningful paper (or file in this day and age of digitalisation), which is intended to regulate our actions and give us security in this regard.

What does the code of conduct say?

Preventively, if the code of conduct is designed in such a way that it can have an effect and protect the business, the most valuable assets of the organization but also relationships.

Revealing or already investigative when it comes to identifying violations of the code of conduct.

Preventively, if the code of conduct is designed in such a way that it can have an effect and protect the business, the most valuable assets of the organization but also relationships.

Revealing or already investigative when it comes to identifying violations of the code of conduct.

From "Having" a Code of Conduct to "Understanding" it

The most important question will be:  How do we build the bridge from "have" to "know" to "understand"?

And the answer quite simple: Very individual.

The simple copying of existing code of conduct - which can be found in the web in abundance - does not have the desired effect.

Now, when the bridge between "knowing" and "understanding" needs to be built, the practical examples, dilemmas, setting, eco-system and many perspectives more are missing to show employees how to implement the requirements of the code of conduct.

It is not outlined and answered

-       how they have to react to dilemma situations,

-       how they receive support in the form of tools and personal support within the organisation.

-       And how to behave if they have to deal with corruption and bribery – this just as an example.

With the knowledge about these core elements, no code of conduct will become a pure alibi, but a signpost that will be correctly understood and (hopefully!) implemented by all those involved.

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.coporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com

It is obvious that many business leaders feel stressed during crises. Also, the actual pandemic - which could harm the business - can be stressful.

And a fraud case often ends in corporate crisis as we can witness reading the daily news. I am sure - this isn’t’ something you want to have on our bucket list.

What I observe is, that there are too many excuses out there why communication in times of crises does not get enough focus.

With the right tools and allocation of resources communication is one of the key success drivers – if not THE KEY SUCCESS DRIVER.

How do you manage the importance of communications in difficult times within your roles and responsibilities?

With your experience of a business leader, I am convinced that you have a lot of examples where you can spot on bad, “OK” and great communication.

The great ones are the ones which supported your goal of how the messages is taken up from your stakeholders and shareholders. The bad and “OK” ones rather not.

The Myth no. 1 I hear when it comes to crisis communication is, that it cannot be practiced enough

Is that true? Let us focus on different parts to get to an answer.

Outlining the main aspects of practical (crisis) communication

I would like to mention three which are also in the event fraudulent behaviour, cyber-attacks, economic crimes, and non-compliance

Response

- Speed (speed in communication, does not have to mean speed in handling the crisis)

- Consistency (coordination of statements)

- Openness (media availability, willingness to disclose information, honesty)

Strategy

- Goal: What do you want to achieve with communication

- Target group: Who do I address

Content

- Instructions for your own safety

- What, When, Where, Why, How

I would like to combe back to the myth no. 1: crisis communication cannot be practiced enough.

In my opinion, there are enough big and small events to practice. Even in a protected, practical setting.

How do you foster yourself and your team to do so as a preparation for the next corporate crisis?

EPISODES' REFLECTION

Where are your heroes regarding crisis communication within your organisation?

What is your own communication pattern in crises?

THANK YOU FOR SHARING, SUBSCRIBING AND REVIEWING

Thank you for joining me on this episode of THE HUMAN FACTOR – Corporate Integrity Matters.

If you enjoyed this episode, please share, subscribe and review on Apple Podcasts or Google Play Music so more people can enjoy the upcoming episodes.

Don’t forget to follow and connect with me on Linkedin and Instagram. I am looking forward meeting you there.

YOU ARE IMPORTANT

Let me know what topic you would like to have on spot – via [email protected]

Further information about Corporate Integrity can be found on www.corporateintegrityconcepts.com

And if you are interested in becoming part of the amazing movement, join us on www.corporateintegrityacademy.com