Senior executives commit 72 per cent of all corporate fraud in which sums at risk are more than œ1m, it is claimed.
Senior executives commit 72 per cent of all corporate fraud in which sums at risk are more than œ1m ? but only one in six face criminal investigation or prosecution. So says a case analysis by corporate investigations consultancy The Risk Advisory Group (TRAG). A study of the last 50 cases in which the company conducted investigations ? combined loss to businesses: more than œ350m ? TRAG found: 78 per cent of corporate fraud cases involved employees; 72 per cent of those in which the sums at risk were œ1m or more involved senior managers; and police were involved in the case following TRAG?s investigation in 16 per cent of cases ? but never before the consultants came in. The 50 cases involved sums at risk of between œ100,000 and œ100m. The cases were largely in Western Europe (60pc of cases) but also extended into Eastern Europe, the US and Asia. Nearly half (48pc) of the cases were in professional or financial services firms, with 14pc in manufacturing, 12pc in fast-moving consumer goods and 18pc in the public sector. Visit www.riskadvisory.net
