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White Collar Crime - Deloitte Forensic
Update February 2018
In November 2017, the Irish Government published a number of measures aimed at enhancing corporate governance, increasing transparency and strengthening Ireland’s response to White Collar Crime.
The measures are contained in the publication entitled “Measures to Enhance Ireland’s Corporate, Economic And Regulatory Framework.
What is White Collar Crime?
White Collar Crime is a well-known and widespread problem that impacts brand value and reputation, goodwill, and profitability of many organisations; any one or a combination of these outcomes ultimately impacts stakeholder value. White Collar Crime has been the subject of a number of several well-known academic theories and studies since as far back as the 1930s and the early definitions are still widely used and are as relevant today. Most notably, Sutherland (1949) defined White Collar Crime as “a crime committed by a person of respectability and high social status in the course of their occupation”
Why does White Collar Crime occur?
Many of us are familiar with the three elements of Cressey’s Fraud Triangle (Pressure, Opportunity and Rationalisation). Fraud or White Collar Crime can occur when these three elements are present. However, more recently Wolf and Hermanson (2004) added a fourth element, capability, and advanced the theory that fraud cannot be committed unless the perpetrator has the capability to do so. This has led to the Fraud Diamond Theory, which is a vital theory for organisations in understanding how White Collar Crime occurs and how to prevent, detect or investigate it.
How can organisations safeguard against White Collar Crime?
At a time when White Collar Crime is at the forefront of public policy in Ireland, it is important for organisations to re-visit the four elements of the Fraud Diamond and take steps to implement an effective fraud policy and minimise the risk of White Collar Crime occurring focusing on these four elements. When White Collar Crime occurs, it is important that organisations take appropriate steps to investigate how it occurred and to take the necessary steps to ensure that it does not re-occur.
If you would like to know more about our service offering in the area of White Collar Crime please contact one of our Forensic team in Deloitte.