A BRIEF INTRODUCTION ON FRAUD & FRAUD CONTROL IN OUR ORGANISATION

March 02, 2017 | posted in News | posted by : Manappuram Finance
What is Fraud?

A. An act which is intentionally misleading the organization and / or performing actions / activities which cause potential damage to the organization.
B. Fraud is any intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain.

A fraudulent act not only results (potential damage) in financial loss to an organisation but also causes reputation loss, which is more grave in nature.
Fraud is commonly understood as dishonesty calculated for personal advantage. A person who has been identified as dishonest can be Classified as a Fraud.

What are the Different Type Of Frauds?

Commonly all the instances of fraud can be classified and will fall under one of the following categories . . . Opportunist, Habitual and Need Based.
This three cornered concept is more popularly known as the “Fraud Triangle”.

Opportunist - Make hay while sun shines

Habitual – Fraud is a way of life

Need Based - Fraud is the answer to my immediate need  
                                                         
***A Detailed note on how each of the Corners can be controlled will be mentioned in the next issue.

Employee Speak-Up Policy

At Manappuram the “Whistle Blowing Channel” is called Speak-Up and the Vigilance & Fraud Control Unit has an increasing dependency on our staff for using this channel to indicate and curb issues of fraud.

Every employee must “Speak-Up” if you suspect, or know of, any actual, planned or potential behavior of Staff that breaks, or may break, any laws, regulations or organisational standards. Employee Speak-Up is a simple, yet highly effective management tool designed to enable concerned employees, to put a stop to practices that have a negative effect on the company. Speak up is an extended arm of our Whistle Blowing policy.

The company’s aim is to help develop and maintain honest work ethics in your workplace by providing an independent method through which employees can report incidents of unethical practices.
If you have the knowledge of the suspicion of activities around you that may be fraudulent and/or in breach of company’s policies . . . please do report promptly.

Few behavioral patterns and red flag indicators a staff should look out for:

•     Staff living beyond means
•     Frequent complaints on financial hardships
•     Refusal for advancement
•     Increasingly secretive about professional activities
•     Unusually close association with vendors and / or customers

The purpose of the MAFIL Speak Up! note is to provide all employees with a mechanism for reporting any suspected breaches to our code of conduct and also to provide detailed information on how Speak Up! Reports will be investigated.
For more details about our Speak-Up Policy please refer Circular #5815.   
 
Rajiv Rathinam
GM, Vigilance & Fraud Control Unit

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