The Key

The management of a business' leadership and culture can help to keep employees engaged and less likely to commit insider fraud

Fraud poses a major threat to every business all around the globe. From charities and housing associations to food and sport - every sector is subject to fraud risk.

The challenge of combatting fraud is ever increasing. According to Crowe's 2019 Financial Cost of Fraud report, the UK loses close to £190 billion to fraud related crimes each year. This figure has risen by 56.5% over the past decade.

This heightened risk means it has never been more important for businesses to protect themselves against the impact of fraud.

The Influence of Leadership

A business' leadership team plays a pivotal role in its growth. Leadership style influences the tone of corporate culture, the engagement of a team and, ultimately, the sustainability of a business' success. Leadership also has the potential to increase or decrease the risk of internal fraud.

This is not leadership in the sense of governance through processes and procedures, but with respect to what can be described as the culture created by leaders.

Leaders who place focus on building a positive working culture which is aligned with their whole team, will enjoy a highly motivated team who are all pulling in the same direction, driven by the same mission. Engaged employees are more likely to 'buy into' why compliance is needed and appreciate its value in protecting the business and the whole team.

Whatever level they sit within their organisation, every leader values an environment to allow them to perform to the best of their ability. There are a variety of perspectives on how leaders achieve success. Some are driven by metrics, look to meet or exceed defined targets, enhancing team productivity or contributing to build the business.

To achieve the personal success they strive for, some leaders might choose to implement performance benchmarks for their team, such as profit or output targets. These benchmarks are designed to monitor how well the team is performing to gauge how close the leader is to achieving the targets set upon them and their personal goals.

However, this drive for personal success should not come at the cost of a happy, engaged and motivated team. This can be counter-productive and result in not achieving the desired objectives. When leaders push for success at all cost, it can create performance pressures which often compromise the quality of output...

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