Vigilance vital to mitigate corporate fraud
Being vigilant and taking proactive measures are of vital importance
in mitigating a rising trend of corporate fraud which affects corporates
in Sri Lanka and in many other countries.
This was the common view of several corporate leaders and forensic
professionals at an evening discussion that CMI Sri Lanka Branch
organised with their knowledge partner KPMG, at the Cinnamon Lakeside
President, CMI Sri Lanka Branch, Rohitha Mendis spoke on the thoughts
behind selecting this theme for the evening forum in his welcome
Managing Partner and Country Head, KPMG in Sri Lanka, Reyaz Mihular
who moderated the discussion said that many people have a wrong
conception that they are fully protected and would never fall victim to
fraudulent incidents. He was of the opinion that more often than not, it
is such people and their organisations that are exposed to the highest
risk, since they may ignore early warning signs and thus fail to take
Country Director, Asian Development Bank, Ms Rita O'Sullivan,
Managing Director, Sampath Bank, Aravinda Perera and Managing Director,
Lanka Walltiles, Mahendra Jayasekara and, Partner-Head, Risk Consulting
and Forensic of KPMG in Sri Lanka, Jagath Perera took part in a panel
discussion thereafter, led by Reyaz Mihular.
Ms Rita O'Sullivan said it was very important for organisations to
have good governance structures and follow high ethical standards, so
that they could minimise the potential risk of fraud. She emphasised the
need to encourage whistle blowing where people can report incidents of
perceived wrong doing in confidence without having to worry about the
adverse consequences they may have to face as a result.
Aravinda Perera, shared his views on the need to take prompt action
when a fraud is suspected. He spoke on the consequences that
organisations and society at large would face if fraudulent incidents
were ignored and fraudsters were treated too leniently. He stressed the
need for good independent systems in identifying genuine grievances and
said that organisations should be fair, confidential and effective in
Mahendra Jayasekara, shared his experiences about how the
manufacturing industry could tackle these challenges.
He said that management intervention must be minimal or ideally none
at all so that perceived incidents can be reported directly to the
highest levels of the organisation and acted upon.
He said that people with stronger competencies would be more capable
of committing fraudulent acts and while competency is essentially
important, organisations must also seriously assess honesty when
Jagath Perera, in his presentation, 'Zeroing in on fraud - is enough
being done?' shared an overview of the types of frauds that are
currently experienced and red flags or warning signs which might alert
organisations of potential frauds.