Security & Risk Management Seminar

Pro-Active Approaches To Fraud Prevention

Presentation Abstract

Our nation lost more than 3,000 financial institutions from 1986-1992 because of fraud, mismanagement and waste -- and the cycle has begun again. The case histories of those failed institutions reveal that most of them shared many well-documented, common denominators that examiners now use as failure "predictors", or "profiles". Examiners from all of the nation's regulatory agencies, insurance company risk management specialists -- and security, audit, operations, human resources and compliance personnel from thousands of financial institutions -- continue to contribute to the development of these profiles.

This presentation addresses the methods used by both internal and external offenders to determine if an institution is vulnerable to policy violations and criminal activities. Using the Security Officer to promote these strategic and tactical suggestions -- and the accompanying prevention methods -- will likely reduce an institution's losses significantly. This presentation provides a logical and strategic model that's designed to help Security Department personnel understand the true scope of the processes used to commit policy and procedural violations, and criminal acts -- and to then escape responsibility. By understanding the cause and effect relationships between the institution's processes and practices -- and an offender's behavior -- the Security Officer may use this model to design and implement a standardized, institution-wide anti-fraud process. Among the topics to be presented that often contribute to an offender's "window of opportunity" are:

l        Why an organization's culture is the most important deterrent to loss -- and what aspects of that culture leave the institution vulnerable to policy violations and criminal acts

l        How an organization's policies and procedures not only can prevent losses -- but what practices are the most effective in supplying evidence if a loss occurs

l        Why certain crimes target specific personnel -- and how you can establish and maintain a loss prevention "commitment" with all of your employees

l        What documents are most often forged, altered and counterfeited -- and how computers and records are used to facilitate policy violations and crimes, and to conceal/reveal evidence

l        Who uses facility opening and closing procedures to their own advantage -- and why these industry-standard procedures may not be enough to deter policy and criminal violations

Presentation Topics

l        Overview

l        The Security Function's Role In Fraud Prevention

l        The Security Function & Regulatory Requirements

l        The Security Department Is A Business Unit

l        The Annual Security Program Report Is A Fraud Prevention Tool

l        The Risk Assessment

l        The Financial Offender's Strategic Plan

l        The Institution’s Loss Prevention Strategic Plan

Presentation Objectives

This presentation is designed to help you:

l        Conduct an initial and continuing risk assessment regarding the institution's potential exposure to policy and procedural violations, and criminal acts

l        Identify policies and procedures -- and controls -- that should be retained, modified or eliminated

l        Determine if your institution's policies, procedures and practices are appropriate and effective

l        Make recommendations that will likely enhance the institution's ability to prevent these events -- or to assist in the identification, apprehension and prosecution of offenders

Presentation Audience

l        Security Officers

l        Board of Directors

l        Auditors

l        Human Resources Managers

l        Training Managers

l        Compliance Officers

l        Retail Operations Managers

l        Staff personnel

Presentation Tools

l        Workbook text

Last updated on January 7, 2008