‘Half Of Firms’ Vulnerable To Issues Such As Fraud

Around half of businesses in the UK are not currently doing enough to protect themselves from a number of risks, including the potential danger of fraud.

According to the report by the Chartered Institute of Internal Auditors (IIA), 45 per cent of internal audit specialists feel firms are still at the early point of developing their understanding of the risks they face.

This was despite those involved in audit processes having more access to higher management personnel.

Ian Peters of the IIA said developments seen in the 21st century were a key driver of issues, stating: “As digital technology advances ever faster, the risks of both accidental leaks of confidential information and malicious attacks also grow significantly.”

The IIA is a professional association for internal auditors in the UK and Ireland which has around 8,000 members and is part of a global network with 180,000 members across 190 countries.

Expert Opinion

It is worrying to see the general view that many companies have so far perhaps failed to properly consider the steps they need to take to protect against fraud and others. Although with difficulty economic trading conditions, risk and compliance expenditure may be an area that is not promoted. <br/> <br/>"With the likes of the FCA and SFO working hard to increase corporate accountability, it is absolutely vital that organisations work quickly to consider how their systems and controls protect against financial crime. <br/> <br/>"The consequences of failing to meet the necessary standards could be huge, so this is simply something that businesses should seek advice on as soon as possible."