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Curb The Emergence Of Corporate Frauds by Naman Vohra





Article Author Biography
Curb The Emergence Of Corporate Frauds by
Article Posted: 10/15/2013
Article Views: 221
Articles Written: 185
Word Count: 507
Article Votes: 0
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Curb The Emergence Of Corporate Frauds


 
Seniors,Business
Corporate fraud or senior executives indulging in fraudulent practices has been in the industry for quite some time now. The corporate world has witnessed many instances of frauds committed by senior executives throughout the globe. There are numerous types of corporate fraud identified so far. Most common amongst them are listed below:- Account Takeover Exploiting assets and information Betting Scams Mis representation Of financial statement What drives a person at coveted position to get his / her image tarnished? The most common reason for such a behavior is the grinding down of the ethical values. Other reasons like greed, weak regulatory mechanisms also fuel the motive of the Executive. A person at that position might have assumed that his/ her activity will never be revealed,but sooner or later people get caught. Their achievements so far goes for a toss and many a times they are sent behind bars for their nefarious activities.

How do enterprises cope with the after effects of a senior level fraud? Corporate frauds cripple the functioning of an organization to the extent of employees and stakeholders losing faith in the entity. A senior level executive is hired in the hope that he / she will take the organization to new heights. When hopes don't meet facts, an organization wonders as to where it went wrong. Enterprises start to share more of the limelight for the infamous cases and CEO fraud. This hampers the reputation as well because people start to doubt the integrity of the organization. Isn't it high time for the organizations to take steps in order to curb the menace of CEO scam? Every organization in any given industry is looking for a solution to bring this situation to an end. That is the reason they are adopting preventive measures like executive background check before bringing a CEO on board.

Still why isn't the above practice serving the purpose? Organizations opting for background checks are only looking at a single aspect at time of screening the CEO. Executive background check of a CEO should be framed in a way so that is brings to notice every information about a prospective CEO which can be known. Executive background check of CEO ought to be kept as a discreet process because screening senior executives and employees cannot be the same. In case of a CEO screening one cannot ignore the fact that many information might get undisclosed because of his/her long tenure across multiple locations. A prospective CEO might have committed a crime in some state at the very beginning of his career and then moved on to a different location.Therefore a standard background check will not serve the purpose, because it will only gather the recent past information. Executive background for a CEO should be capable enough to reach to the feasible, extreme past of the person to gather every relevant information. It's time organizations should try a different approach.

Naman is associated with a leading background screening company that specializes in Executive Screening

Related Articles - background screening, background check, executive screening, executive background check, executive search,

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