Preparedness for crisis

During crisis situations, the risk of fraud increases manifold, as perpetrators tend to exploit vulnerabilities in business processes to take advantage of the uncertainty. The situations in economic downturns, pandemics, natural disasters, and cyberattacks often destabilise organisations, forcing them to thrive for survival with limited resources under challenging conditions.

In recent years, COVID -19 pandemic period was seen as the most challenging period in centuries that significantly impacted operations and forced organisations to adapt to various challenges. Therefore, it is essential for organisations to proactively prepare for such crisis in advance. While the next crisis may be unpredictable, organizations that plan in advance can mitigate the potential repercussions leading to disruptions in their operations.

Key areas of vulnerability

Proactive crisis preparedness: Fortifying business resilience against economic and global crises

Preparing for fraud risk during a crisis requires proactive planning, strengthened controls, clear communication, and regular testing. By mapping out specific fraud risks, building a fraud response team, deploying technology for monitoring and detection, and fostering an ethical culture, organizations can significantly reduce their vulnerability to fraud during unprecedent times. Having a robust fraud risk management plan in place before a crisis strikes allows for a swift, organized response that minimizes both financial losses and reputational damage.