Content thumbnail Shifting into High Gear: Mitigating Risks and Demonstrating Returns

Figure 3. Top fraud risks using FDA Internal fraud Internal fraud (travel and entertainment (travel and entertainment 77%77% abuse, collusion, etc.)abuse, collusion, etc.) Cyber breach or insider threatCyber breach or insider threat 70%70% Bribery and corruption riskBribery and corruption risk 68%68% Financial statement fraudFinancial statement fraud 60%60% Capital projects riskCapital projects risk 44%44% Money laundering Money laundering 43%43% Merger and acquisitions riskMerger and acquisitions risk 34%34% OtherOther 10%10% Q. In which of these risk areas or types of fraud does your company use FDA when investigating incidents and/or monitoring risks? Base: All respondents (665) Multiple answers allowed, may exceed 100%. Regulatory enforcement becoming more rigorous and widespread FDA demand is also being driven by increasing government and public scrutiny of fraud risk, with 43% of respondents citing regulatory pressure as one of the main reasons behind their investment in FDA, second only to responses to growing cybercrime risks. 43% C-suite respondents are more likely to be concerned about regulatory pressure. This is not surprising considering that high-profile regulatory enforcement actions have been of respondents cite regulatory pressure dominating the headlines, leading to billions of dollars in fines and the prosecution of as one of the main reasons driving their individual executives. investment in FDA. Figure 4. Top drivers of FDA investment Response to growing cybercrime risksResponse to growing cybercrime risks 53%53% Increased regulatory scrutinyIncreased regulatory scrutiny 43%43% Increased risk of fraud in emerging marketsIncreased risk of fraud in emerging markets 32%32% Pressure from the board or management teamPressure from the board or management team 31%31% Seeking greater cost efficiency in the fraud Seeking greater cost efficiency in the fraud 30%30% risk management processrisk management process Recent fraud risk assessment findings in the organizationRecent fraud risk assessment findings in the organization 26%26% Need for more robust third-party due diligenceNeed for more robust third-party due diligence 25%25% Increasing merger and acquisition activitiesIncreasing merger and acquisition activities 13%13% Increased calls to your “whistle-blower line”Increased calls to your “whistle-blower line” 9%9% Other main reasonsOther main reasons 4%4% Q. What are the main reasons that you are planning to increase your investment in FDA capabilities? Base: Respondents who plan to increase investment in FDA (405) Multiple answers allowed, may exceed 100%. Global Forensic Data Analytics Survey 2016 | 9

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