How important is the Role of HR Domain in Preventing the Fraudulent Acts Happening at the Organisations?

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How important is the Role of HR Domain in Preventing the Fraudulent Acts Happening at the Organisations?

HR Fraud

Trust is obviously the most basic formula for the success of a corporate environment. But at the same time occupational fraud rate is increasing drastically, ever since technology started ruling the industry. The HR domain has an important role in minimizing the risk at the occupational center.

One of the most devastating parts is to realize that the fraud was done by one of the trusted employee within the organization. May be this employee had been working for a long term with the organization and know much about the weakness of the office processes, others employees, inside elements etc. Mostly such people don’t have a history of cheating and so are the first time offenders. So in order to minimize the chances of cheating the employers must learn the factors or the circumstances that has lead one to do this crime. This kind of step is the only way to save the corporate world.

Anyhow for stopping such crimes we should understand the inputs that made or encouraged an ordinary employee to commit the crime. One of the classic model states 3 factors that should be tracked to find out the reason behind such frauds.

Opportunities

In fact opportunities are gained by the lack of the internal security controls. In order to eliminate such issues the management should take steps for controlling or monitoring the powers of an employee. For instance, no employee should be given unrestricted control over financial dealings or documental or investment functions of the organisation. In addition to that track the processes that are under the control of an employee. So from the initial stage inwards, keep the functions transparent at least to the authorised official team.

Motivations

The factor that happens as a motivation to such frauds varies from financial frustrations, grievance towards policies of the organisation as well as the pressure to achieve success. In addition to that the main motivations of the employees to utilise such opportunities are the stress factor. So in short management should motivate in doing their works through good pay and HR policies. Likely, such an approach can wipe out the temptation of to explore some of the favourable situations. The management must encourage employee engagement programs and so let all the decisions taken are in favourable to both employees as well as the organisation. Such a practice of tracking the employees can lessen the chances of fraud rates happening within the organisation.

Rationalisation

Here the employee can state a reason that supports the fact that they are not doing anything purposefully. Sometimes the employee takes a financial favor from the project with the intention of returning it. Again the lack of acknowledgement of the fraud is also one reason for such acts. Anyhow, such approaches are also categorized as crime.

At times it becomes very much necessary for the organizations to redefine their strategies that may not clearly define fraudulent acts. So for that make sure that your organization have policies that clearly state all major rules related to the organizational functions. Also you should make the employees aware about all such things. This should be done on a periodical basis.

Most of the organisation does not have a fraud tracking system and so many times they came to know about such acts after noticing some irregularities. By that time, all the things might have wrapped up and so the impact becomes so large. Anyhow any fraud is detected within the organisation the after steps should be never compromising. That is through such steps one must make the employees realise how serious the organisation is towards such attempts. It is sure that such an alert can discourage the employees from committing such crimes knowingly.

Remember, a good hiring decision should be the first step taken by the employer to reduce the rates of the fraudulent attempts. The recruitment policies should be written with serious notes on such acts. The ethics of the fresh entries must be verified clearly. So just making sure that you are hiring the right person can simplify all the upcoming issues.

Anyhow it is important that both the organisation as well as the employees learn from mistakes. In short, making use of the HR functions in the right way can reduce the chances of fraudulent act.

aju
aju

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