Persuading the bosses

Convincing 'C-level' that fraud management is an operational must


By Tim Keller, Associate Member

Here are some ways to help convince your C-level executives - the CEO, COO, and the CRO - that managing fraud across your entire entity can result in a positive rate of investment in the long haul.  

Recently, I was invited to a strategy meeting with a group of C-level executives - the chief executive officer (CEO), chief operating officer (COO) and chief risk officer (CRO) - along with a couple of fraud examination managers for a large financial services company. We were discussing the issue of enterprise-wide fraud losses when the COO chimed in that fraud was only .05 percent of their operating budget, so their fraud situation was very much "under control." Heads were nodding up and down in agreement and everyone was ready to move on when I respectfully interjected my words of caution.

Certainly, if you look at the issue in terms of fraud "loss," it's hard to disagree with such a small percentage. However, fraud is very rarely only about immediate losses. For example, there are definite company-wide process issues that can quickly drive your profit potential south if you don't rein them in. In addition, with every new security breach and identity theft, consumer trust is degraded, which threatens business growth. So why is it still such a struggle to convince C-level executives that managing fraud across an entire organization has become an operational must?

It's apparent that the key to winning the boardroom battle is to arm fraud and security professionals with pertinent information and hard financial numbers that draw a direct correlation between fraud solutions and business risk.

 

 

 

 


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