Fraud risk management techniques in selected Maltese large companies : an assessment

Abstract

The occurrence of fraud does not depend on the size of the firm. Consequently, although most Maltese large organizations are small in size when compared to foreign companies, the importance of fraud risk management should not be underestimated. The use of formal fraud risk management techniques is beneficial to every type of organisation as they help companies to protect against known risks, to adapt to new fraud vulnerabilities as they arise and to take proactive steps in the prevention of future fraud. This research study assessed fraud risk management techniques encountered in Maltese large companies. The objective of this study was achieved through semi-structured interviews carried out with 16 companies. From this research, it emerged that most large companies have adequate techniques to prevent or detect fraud within their company. However, differences were found when the findings were compared with foreign literature and with a previous study on the prevention and detection of fraud in selected Maltese SMEs. This study shows that much improvement has been made during the last decade regarding the prevention, detection and response towards fraud. However, more has to be done in order to be in line with foreign companies. The main concerns are the implementation of a formal whistle-blower hotline and more public awareness of fraud risk management techniques implemented in large companies