Fraud and Risk for the Entire Enterprise

by Christine Dobrovich & Mark W. Warner, CFE

Compliance requirements such as Sarbanes Oxley,
Federal Sentencing Guidelines, Foreign Corrupt
Practices Act and shareholder activism have brought
about a sea of change in corporate governance reforms.
However, investors are now demanding more than the
compliance minimum for corporate governance. In the
wake of increased global competition and an
increasingly uncertain political and economic climate, no
longer does financial statement integrity alone create
and sustain shareholder confidence.
Spanning across financial, operational, strategic, and
compliance areas, enterprise risk management is
emerging as not just good business practice but a
business imperative. Whether protecting a company’s
competitive positioning, alleviating pressure on product
margins, retaining key talent, or maintaining compliance
in a dynamic regulatory environment, enterprise risk
management helps protect the integrity, viability, and
value of the organization. Protecting the integrity,
viability, and value of the organization requires a focus
on fraud risk and fraud controls.