AIG offers the following fraud insurance policy tips for companies to help limit their fraud exposure:
- Businesses with robust internal controls and good management practices can help limit their exposure to fraud, but it is difficult to eliminate the risk completely. It is therefore also important that companies cover themselves for this risk with an appropriate insurance policy.
- Directors and officers remain ultimately responsible for the well-being of the company and should place a strong emphasis on fraud prevention and deterrence.
- Internal control systems and internal audit are identified as the two major tools to prevent and to fight fraud.
- Companies should implement a fraud prevention policy, aimed at managing and reducing the risk of fraud, as well as a fraud response plan.
- A confidential reporting process should be in place to encourage employees to come forward with information on potential or possible fraud.
Every company needs to act to prevent fraud, and to consider the need for a fraud insurance policy.
|
