EFFECTIVE SUPERVISION AND FRAUD ARE ESSENTIALLY BOTH ABOUT CONTROL.
Both also, are an essential element when thinking of risk management. Without sufficient supervision, without checks and balances to prevent fraud, the risk level in any financial services organization simply will be too high.
With the series ‘Risk@360Degrees’ the editorial team of Banking & Finance Magazine aims to inform and inspire the delegates so they are more able to face the challenges they have in their professional life.
Risk continues to be a focus point for modern leadership of all financial services companies. Shareholders and regulators, clients and media all demand that banks and insurance companies do everything they can to prevent the unexpected to happen. Financial institutions face severe consequences these days if they do not monitor, manage and mitigate risk.
Whatever technology, methodology and organizational structure used there continue to be threads. Criminal minds will try to use banks and other providers of financial services as tools in their illicit plans. Fraudsters try to obtain funds from the bank or insurance company, often working from within.
So apart from technology and supervision structures within the organizational model top-management needs to focus on mentality and culture. The right professionals on crucial positions within the organization will make sure that checks and balances are implemented. In the end it will be people with the right set of moral values who will make the right decisions. The right decisions for their clients, their shareholders, their organization.