Singapore Companies Lag Behind in Fraud Risk Management
A recent survey by PwC has revealed that while Singapore-based companies are taking steps to combat fraud, there is still significant room for improvement in their dedicated fraud risk management programs.
Gaps in Fraud Risk Management Programs
According to the Global Economic Crime and Fraud Survey 2020 - Singapore report, only 42% of Singaporean companies have a dedicated program to address cybercrime, while 39% have one for customer fraud. The survey also found that many companies are not doing enough to prevent recurrence, with nearly half (49%) not conducting an investigation after an incident occurred.
Building a Robust Risk Assessment
The report highlights the importance of building a robust risk assessment as the foundation of a successful risk management program and formalizing the response to fraud risk to better mitigate and manage it. It also emphasizes the need for companies to create dedicated fraud risk management programs to address areas of highest risk.
Technology’s Role in Fraud Prevention
In terms of technology, 73% of respondents in Singapore have implemented or upgraded their technology used to combat fraud over the past two years. However, there is still potential to enhance internal control systems through the use of technology, and companies must better customize solutions to specific risks faced by each organization.
Room for Improvement
The survey also found that only 21% of Singapore-based companies have real-time detection/alert generation for fraudulent activities in addition to regular testing for operating effectiveness. Furthermore, just 15% conduct risk-based due diligence and ongoing monitoring of third parties enabled through the use of web-based applications and other tools and technology.
Responding to Incidents
When it comes to responding to incidents, the survey revealed that a significant proportion (28%) of Singaporean companies feel they are in a worse place after experiencing and remediating a fraud. This is compared to 17% globally who felt the same way.
Key Takeaways
- Only 42% of Singaporean companies have a dedicated program to address cybercrime.
- Many companies are not conducting investigations after fraud incidents occur.
- Technology is not being fully utilized to combat fraud in Singapore.
- Companies must customize solutions to specific risks faced by each organization.
- Viewing disruptive events as an opportunity for transformation is crucial.
Experts Weigh In
Michael Peer, Forensics Leader at PwC Singapore, emphasized the importance of building a robust risk assessment and formalizing the response to fraud risk. “Companies must view disruptions as opportunities for forward-looking transformation and take a proactive approach to preventing recurrence,” he said.
Richard Major, South East Asia Risk Consulting Leader at PwC Singapore, added that companies must prioritize understanding the root causes of incidents and formulating structured responses. “Investigations are crucial in identifying the root causes of fraud and preventing future occurrences,” he noted.
Full Report
The full report is available here: [insert link].