Corruption Risk
We were tasked with verifying the credibility of an insider threat report and conducting a comprehensive corruption risk assessment. Our investigation focused on allegations against a staff member, evaluating both the potential organisational impact and whether the individual was acting independently or as part of a broader network. As part of the initial assessment, we analysed procurement data associated with the individual’s purchasing activities to identify patterns or biases that may indicate preferential treatment towards a specific supplier. .
Assessment Process
Initial data and fraud risk analysis did not reveal any definitive patterns indicating an insider threat between individuals and suppliers. However, given the organisation’s significant reliance on single source procurement a deeper review was conducted. Financial records for these purchases during the specified period were requested, including company details, payment records and bank account information. Subsequent analysis uncovered several patterns, including instances where individuals manipulated financial data, such as diverting suppliers payments to personal accounts
Solution
Beyond the suspected fraudulent activity, the analysis revealed that the finance gatekeeping function was understaffed, resulting in missed opportunities to identify and mitigate risks. Additionally, the urgency associated with a high percentage of procurement led to the implementation of expedited processes that lacked appropriate governance controls. These findings, along with key recommendations, were formally reported and integrated into the organization’s anti-fraud culture change initiative. This included a comprehensive review and enhancement of procurement and finance procedures to strengthen oversight and risk management.
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