Deloitte India Forensic Publications
Lead by example: Making whistleblower programs successful in corporate India
Launched in June 2014, the report focuses on why whistleblowing programs in India have not been as successful as they have around the rest of the world. It also discusses steps that companies need to take to make these programs successful starting with senior leadership commitment, better access, support for multiple languages and awareness building measures.
Managing fraud and dispute challenges in the Infrastructure sector
To understand the sentiments of infrastructure companies on how fraud impacts the sector, we launched a brief survey in August 2014 seeking views from infrastructure companies across India. On the basis of the received responses, the survey report offers insights into some of the key fraud and non-compliance risks that companies in the sector face, even as they gear up for growth.
Deloitte India Forensic’s Fraud Risk Score Tool
Many Indian organizations, while being aware of fraud, continue to take a reactive approach to fraud risk management. In our experience, one of the key reasons for this approach is the perception that it takes a long time and significant investment to develop a comprehensive fraud risk management framework and implement it. Further, companies with an existing fraud risk management framework prefer assessing it for effectiveness and identifying gaps that can be plugged over time. Launched in Dec 2014, this tool can help you understand your organization’s preparedness to tackle fraud, misconduct and noncompliance.
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Public perception of Anti-Bribery and Corruption Compliance efforts
In November 2014, the Forensic practice ran a brief survey that attempted to understand what the working professional in his/ her individual capacity felt about their organizations’ anti-bribery and corruption compliance efforts, as well as sought their views on how they can support their organization’s efforts towards managing this risk. The responses received were compiled into a report and released on 8 December 2014, titled ‘Public perception of anti-bribery and corruption compliance efforts’. This report was also meant to commemorate International Anti-Corruption Day, observed annually on 9 December by the United Nations Convention Against Corruption.
Deloitte India Fraud Survey, Edition I
Corporate India is more aware of frauds today than ever before. Recent legislative focus has elevated fraud risk management to the levels of corporate strategy. Organizations are spending a significant amount of time, over the last few years, to identify frauds and understand how they are perpetrated. While companies have become aware of traditional frauds such as bribery and corruption, they are still unable to effectively mitigate these risks. Additionally, proliferation of technology and new business models is spawning new fraud risks that companies are unable to comprehend, such as the risks associated with virtual currencies or social media. Needless to say, these fraud risks increase the challenges of operating in the current business environment. Released in December 2014, this is the first edition of the Deloitte Forensic Fraud Survey and is our marquee publication aimed at capturing the sentiments of corporate India on the topic of fraud, misconduct and noncompliance.
De-mystifying fraud risk management for the board
The Deloitte India Forensic practice along with the Bombay Chamber of Commerce and Industry jointly developed a whitepaper on the “Role of Board members in fraud risk management”. This whitepaper was released in March 2015 in the presence of key 25-30 Senior Management from across varied corporates, during an interactive panel discussion. The whitepaper discusses the varied challenges faced by Boards to ascertain the effectiveness of the organization’s fraud risk management practices as well as assists by providing a model for Fraud Risk Management and some best practices to help improve the effectiveness of current fraud risk management practices.
Cyber threats and the Board’s role in curbing it
This whitepaper released in April 2015, discusses the rapid increase in the prevalence and sophistication of cyber-crime and cyber espionage compromising organizational networks and data. It discusses varied cyber threats and its motivations, the role of the board in managing it as well as provides a checklist that can help establish better cyber threat risk governance.
India Banking Fraud Survey, Edition II
The Deloitte India Banking Fraud Survey report is one of the marquee publications coming from the Deloitte Forensic practice, meant for the Banking sector. The survey report released in April 2015, represents the views of key people/ senior management responsible for compliance and fraud risk management across varied financial institutions based in India. Some of the themes covered in the report include addressing some of the fraud prone areas and fraud incidents encountered by the banks, the preparedness of financial institutions to tackle this issue, the emerging role of forensic data analytics in detecting fraud; to name a few.
Life Sciences sector—managing growth through better compliance management
The Indian Life Sciences sector is undergoing major changes driven by changing business and consumer needs that are closely mirrored by regulatory changes. The fast pace of growth in the sector has been accompanied by instances of regulatory non-compliance discovered in the course of regulatory body inspections, impacting the reputation and business prospects of the companies involved. This survey report, released in June 2015, helps understand how life sciences companies in India are managing the challenges of regulatory non-compliance, and their views on the state of internal controls as well as drug production standards
Building effective internal financial controls for better fraud risk management
The Companies Act, 2013, has emphasized on the need for robust Internal Financial Controls (IFCs) to address the risk of fraud. However, the limited guidance provided in the Act on aligning IFCs towards better fraud risk management, has left companies to come up with their own practices to measure and address the risk of fraud. Released in June 2015, this point of view document shares leading practices to help companies better align their internal financial controls to fraud risk management measures.
Implementing a robust fraud risk management program: 10 Frequently Asked Questions
The Companies Act, 2013, has emphasized the need for companies to have measures that can prevent, detect, and respond to fraud. In our experience, an effective and well-managed fraud risk management program can help achieve some of these objectives. However, companies can face challenges across various stages of building an effective fraud risk management program. Released in June 2015, this whitepaper cam help organizations get clarity on the common concerns pertaining to fraud risk management.
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Complying with the proposed amendments to the Prevention of Corruption (Amendment) Bill, 2013
With the Prevention of Corruption (Amendment) Bill, 2013, being passed in the Lok Sabha, India has taken the first step towards building an effective legislation to curb bribery and corruption. As per the provisions of the Bill, all aspects of passive bribery, including the solicitation and acceptance of bribe through intermediaries can be considered an offence. The impending enactment of this Bill is likely to prompt corporate India to re-look at the practices employed while dealing with government officials. To help organizations understand the scope and implications of this Bill, and to help them take necessary action to comply with the proposed provisions, Deloitte India Forensic released a point of view document in June 2015.
Fighting corruption in the Maritime Industry
The Deloitte India Forensic practice sponsored an event organized by MANSA (Mumbai and Nhava Sheva Ship Agents Association) on 3 July 2015 in Mumbai that covered the issue of bribery and corruption – a leading threat to the shipping and ports industry. In order to help understand this issue we launched a ‘Point of View’ document that covers the basic fraud risk prone areas within the shipping cycle, delving into each fraud scenario substantiated by case studies. The document also provides some recommended actions/ steps that can be taken by companies in order to be compliant with varied regulations.
Growing importance of the Competition Commission of India and impact of the Competition Law | Issues to be watchful of in the Indian Shipping and Maritime logistics industry
The Deloitte India Forensic practice sponsored an event organized by MANSA (Mumbai and Nhava Sheva Ship Agents Association) on 3 July 2015 in Mumbai. In order to help tackle anti-trust issues, we launched a ‘Point of View’ document that talks about aspects that could be construed to be anti-competitive as well as what steps can be taken towards compliance. The document also looks into the three categories under which the CCI carries out its duties by regulating anti-competitive activities, also forming the main provisions of the Act i.e. to prohibit anti-competitive agreements between enterprises, to prohibit abuse of dominance and lastly, to regulate combinations. This has been substantiated by case studies to help understand the issues further.
Understanding the impact of the proposed Prevention of Sporting Fraud Bill, 2013
Released in August 2015, titled ‘On a sticky wicket’, the document outlines the key types of fraud, noncompliance and reputational risks faced in the sports industry. It emphasizes on the need to develop measures to mitigate these risks that involve not just players, but also members of the larger sports ecosystem such as the player/ team management staff, support staff, sponsors, and advertisers.
Mitigating emerging fraud risks in the mobile money industry
In the last few years the mobile money ecosystem has seen significant growth in India, supported by rising Internet penetration levels and smart phone adoption. Several businesses today derive a large chunk of their sales via mobile money platforms. As the mobile money ecosystem matures in India, it is likely to experience some of the fraud risks currently being observed in developed markets. Released in August 2015, our point of view document tries to cover the fraud risks around mobile wallets as well as how to mitigate some of them.
Deloitte India Forensic’s Procurement Fraud risk tool
Procurement fraud remains the most prevalent fraud risk across industries and organizations of varying sizes and operations. The Deloitte India Fraud Survey, Edition I, also highlighted this aspect by identifying theft/ diversion of goods or funds as one among the top three frauds encountered by organizations in India. To help organizations self-assess their vulnerability to procurement fraud, Deloitte Forensic has developed a secure web-based tool that will allow Chief Procurement Officers (CPOs), Chief Compliance Officers (CCOs) and Chief Finance Officers (CFOs) understand their organizations’ preparedness to tackle fraud, misconduct and noncompliance in the procurement function.
Creating a safe work environment: Best practices to deal with sexual harassment at the work place
As women enter the work force in larger numbers, their safety at the workplace has been a much debated issue in recent times. With the enactment of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (the Prevention of Sexual Harassment Act or the POSH Act), we have observed significant activity among corporates to put in place measures to comply with the Act. To understand the efforts undertaken by organizations in this regard, Deloitte India’s Forensic practice launched a survey based report (in April 2016) titled ‘Creating a safe work environment – Best practices to deal with sexual harassment at the work place.’ The report details the current state of corporate India’s implementation of the Act, comprehending the kind of behaviors that constitute sexual harassment, standard processes to report sexual harassment, and the grievance redressal mechanism adapted by organizations if harassment at workplace is reported.
E-commerce in India | A game changer in the economy
E-commerce has transformed the way business is done in India. With attractive and convenient shopping options at the core of the consumer facing business, the e-commerce industry offers the power to create innovative, sustainable, consistent and seamless shopping experience across all channels. Launched in collaboration with the Confederation of Indian Industry (CII), this report presents the point of view of major stakeholders in the Indian e-commerce industry, along with the key challenges faced by them and key recommendations that will help strengthen this nascent industry to scale and sustain. This whitepaper also has a section that highlights an indicative list of fraud risks faced by the industry.
Managing Fraud Risks in a Cloud Computing environment
Cloud computing is increasingly being adopted by organizations worldwide (as well as in India) due to its ease, cost benefits and flexibility in usage. However, despite the benefits, cloud computing has also exposed individuals and organizations to various security and fraud related threats.Keeping this in mind, the Deloitte India Forensic practice released a whitepaper (in May 2016) that attempts to sensitize organizations to the various risks associated with different cloud computing models, and the importance of developing a robust cloud computing environment with forensic-ready investigation infrastructure. The document also covers potential hurdles that companies face while managing fraud risks associated with cloud computing and how those could have an impact on a digital forensic investigation.
Reporting Frauds by the Auditor - 5 considerations
In December 2015, the Ministry of Corporate Affairs (MCA) came out with a notification pertaining to reporting of frauds (Rule 13 to the Companies (Audit and Auditors) Amendment Rules, 2015). This notification also indicated what could be considered an acceptable threshold value of fraud loss from a reporting standpoint (individually an amount of rupees one crore or above, in this case) – an aspect of materiality that was until now left to the company’s discretion. To help organizations understand the implications of this notification, Deloitte India’s Forensic practice released a point of view document (in June 2016) that provides a brief outline of the notification released by the MCA, some concerns that may arise regarding the new notification and suggestions that could be useful to you.
How prepared is Corporate India to tackle fraud?
The Deloitte India Forensic practice released a new study (in September 2016) on the preparedness levels of Corporate India to tackle fraud – this was basis the responses received by 250 Risk and Compliance professionals that undertook an online fraud assessment tool developed by us. The report provides an analysis on the responses received to the tool as well as insight on some measures that will help improve an organization’s preparedness to prevent, detect and respond to fraud.
Crowdfunding 101: Understanding the associated fraud risks
The emergence of social media platforms, increasing internet penetration, and rising mobile connectivity have all resulted in the creation of a new and innovative entrepreneurship ecosystem known as ‘crowdfunding’. While crowdfunding is at a nascent stage of growth in India; as it matures in scale and gains momentum, organizations as well as individuals need to be mindful of the inherent associated fraud risks. Keeping this in mind, Deloitte’s Forensic practice in India (in October 2016) released a point of view document that hopes to help you understand some of the potential fraud schemes in this space as well as some important precautions that can be taken before investing in a crowdfunding campaign.
Safeguarding your enterprise from social engineering fraud risks
One of the least discussed fraud schemes—social engineering—involves seeking information from unsuspecting victims and using it to dupe/defraud them. Organizations in India have lost several hundred crores by falling prey to such schemes, where typically fraudsters manipulate some aspects of human behavior to persuade employees to share information. The cost effectiveness of this technique makes it very popular across the world, and it can be deployed to extract organizational data as well as personal information. If employees are untrained to respond to requests from fraudsters, it can put organizations at huge risk. This latest point of view document from Deloitte’s Forensic practice in India offers insights on social engineering fraud risks and ways in which organizations can avoid them.
India Fraud Survey, Edition II
Today, everyone has an opinion on fraud. Be it a working professional, far from the rigors of the finance discipline, a small company struggling to recover losses, or a multinational concerned about reputation. It is this diversity of opinions and experiences that makes the fraud landscape in India complex. Consequently, fraud risk management efforts tend to become unique and challenging across organizations. Released in December 2016, the India Fraud Survey, Edition II covers these diverse opinions i.e. multinational organizations, small and medium enterprises as well as the working professional. The 2016 edition of the India Fraud survey also puts the spotlight on five new business trends that will likely impact the fraud landscape in the future - Blockchain, Internet of Things, Robotics, Cashless transactions, and Online market places. As a first, the report also has perspectives from the Deloitte member firms in Japan and Australia on the fraud concerns in their countries and possible challenges faced by some of their clients while working in India.
Moving towards a digital economy: Critical security and fraud control measures to embrace
This latest point of view document from Deloitte’s Forensic practice in India comments on a few concerns that may have an impact on security and governance, as well as some aspects that could help safeguard security and prevent fraud while moving towards a digital economy.
ISO 37001 (Anti-bribery management systems) Implications of the Standard in India
The International Organization for Standardization (ISO) issued its Standard 37001:2016 which specifies requirements and provides guidance for establishing, implementing, maintaining, reviewing and improving an anti-bribery management system (ABMS). This point of view document highlights some of the distinguishing features of the standard in comparison to global legislations, provides details on some of the key clauses included in the standard as well as some of the potential benefits and limitations of being able to comply to the standard.
The Financial Services sector has reached a stage in its evolution where technology has the power to displace and cause disruption across the various distribution models that have hitherto traditionally been followed. Are these new avenues sustainable and more profitable or are they fraught with greater inherent risks? Are distributors likely to face greater ethical dilemma challenges than other professionals? Does Ethics have a role to play in fraud perpetration? To know more, refer to pages 14 to 21 in the section titled ‘Ethics in Distribution’ in a whitepaper that was released at the CII Financial Distribution Summit on 7 Dec 2017.
A look at 2017 and the impact on the fraud landscape in India
As 2017 comes to an end, this one page infographic created by Deloitte’s Forensic practice in India looks back at some of the major developments that have taken place through the year and how they have had an effect on the fraud landscape in India.
FAQs on the Prevention of Sexual Harassment at the Workplace
Deloitte’s Forensic practice in India was part of an event organized by the Bombay Chamber of Commerce and Industry on 19 Jan 2018 in Mumbai that addressed issues dealing with the effective functioning of the Internal Complaints Committee (ICC). Refer to the handout that was distributed at the event, that covers some of the nuances of what constitutes sexual harassment, the redressal process of complaints filed with the ICC as well as some questions pertaining to tenure, timelines, processes etc.
Improving compliance with Sexual Harassment prevention guidelines
The rising levels of sexual harassment reported at the workplace, despite prevalence of laws to deter such acts, point towards the urgent need for better communication as a vital component in creating a zero tolerance culture for sexual harassment. Released in Jan 2018, this point view document from Deloitte’s Forensic practice in India presents five considerations that can help organizations better explain their POSH philosophy and strive towards compliance in “spirit” with the POSH Act, rather than just in “form”.
Addressing School Safety and the need for a new due diligence approach
Recent incidents of physical abuse at school involving young children, indicate that students’ safety is perhaps an area that needs to come to the forefront. To help address this need on an immediate basis, this point of view document from Deloitte’s Forensic practice in India (released in Jan 2018) takes into account the growing school ecosystem, some of the safety initiatives that schools are currently investing in and a new due diligence approach that should be considered along with some its parameters.
Forensic insights on the Personal Data Protection Bill, 2018
This point of view (released in September 2018) covers certain concerns and impact of the propositions made under the Personal Data Protection Bill, 2018 in the context of fraud risk management/ investigation. This document covers 5 essential areas that organizations should ideally keep in mind.
Survey report tackling inefficiencies, mismanagement and fraud in the developmental sector
The survey report released in October 2018, provides perspectives on how organizations mitigate the risk of mismanagement and misconduct in social sector deployments, with a specific focus on the presence and implementation of monitoring and evaluation (M&E) programs within the development sector ecosystem; key measures adopted by organizations for enhancing effectiveness and efficiency of implementations; levels of regulatory compliance among organizations and the level of preparedness of organizations in pro-actively preventing frauds and mitigating associated risks.
Assisting Banks achieve (or to set up) better controls
This point of view (released in October 2018) covers some good practices that banks can consider while setting up new controls or pushing their existing controls to meet certain degrees of efficiency. The areas covered include due diligence at the pre-sanction stage, carrying out background checks, continuous monitoring and end use monitoring.