Corporate Fraud Or Collapse Or Fraud?

1582 Words Jan 9th, 2015 7 Pages
When there is a corporate fraud or collapse in a country, the most insecure are the people who were the part of the company or were in any way related to the company. Corporate fraud and misconduct remain a constant threat to the trust of the general public. In this is white collar crime which harms the company on a greater scale than the collapse because the general goodwill of the company is lost and because of that there are breaches from the corporate act too. In every country, the main effort of a company is to prevent these types of collapses or fraud and trying to design that type of management which can help in avoiding this. The management keeps an overview of fraud risk management, identifies new regulatory rules and procedures to be followed in case any of this happens. The main key objective of a business is to Prevent, Detect and Response in case when a corporate collapse or fraud happens.
Prevention, Detection and Response are the main vital points in this. While preventing from any of this to happen, the management focuses on reducing the risk of fraud and misconduct from occurring. Even if the management is secure and give its entire means to prevent it from happening, there’s always a chance of misconduct and when this happens, the company’s objective changes to detecting the source, they have to then discover fraud and misconduct when it occurs. And after this, the last part is the response of the company, because they have to answer both to the general…
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