Managing Corporate Risk When Employee Fraud Is Suspected

Article 1 of 4: Employee Fraud Series

When a company first becomes aware of financial irregularities in its business, the first reaction is usually to get to the bottom of the concerns. When the issue is suspected fraud, the increased sensitivity needs a quicker response. In those cases, the company may expose itself to increased risk if the next steps are not undertaken with care and consideration as to the preservation of evidence, the protection of information, the involvement of employees and third parties, and the potential outcome of the review.

This article provides some tips, and traps to avoid, for a company faced with suspected employee wrongdoing to minimize those risks.