Ensuring effective and up to date controls are in place for monitoring and mitigating internal fraud risk

Ensuring effective and up to date controls are in place for monitoring and mitigating internal fraud risk

By Richard Huebler, Deputy Head of Financial Crime Management, Raiffeisen Bank.

Richard, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is

I have a long track record in the area of governance, risk and compliance with a strong focus on fraud management. Currently I act as deputy department head of financial crime management within Raiffeisen Bank International Group overseeing fraud, anti-bribery & corruption as well as complaints management.

We are looking forward to you providing your insights on ensuring effective and up to date controls are in place for monitoring and mitigating insider risk at the upcoming Fraud and Financial Crime Summit. Why do you feel this is an important talking point?

In my view each organisation is prone to a certain extent of internal fraud risk and the related losses are often not visible. Such risks are usually tail risk scenarios with an extraordinary loss potential and stay below the radar, as organisations believe the existing controls are up and running and effective, which they might not be. Therefore, it is important that someone asks the important questions and challenges the controls in place.

Can you explain the importance of the implementation of analytical tools to monitor inside behaviour?

Data analytics is a key tool for fraud detection and prevention. Each organisation should establish a strong MIS for its key business processes by collecting relevant data in a structured way that allows monitoring its risk performance.

 

Finally, what challenges do you foresee within the Fraud and Financial Crime landscape over the coming years?

In my view the digital boom and innovation increases the opportunities to establish strong cooperation and relationship with innovative partners offering enhanced products and services that account for improved security and fraud prevention. Therefore effective and state of the art fraud controls, security and safe-guarding data privacy remain a key success factor. In addition and foremost, despite all technologies, it continues to be important for any organisation to sustain a good culture of corporate integrity and to worry about corruption.