Anti-fraud management – Measures to combat financial crime
As companies grow and their structures become increasingly complex, the risk of becoming a victim of financial crime also increases. The financial loss, coupled with the damage to the company's reputation, may be devastating. Munich Re resolutely counters this risk with effective anti-fraud management.
Financial crime ranges from directly caused asset losses to corruption and manipulation of accounts. Although there is no such thing as complete protection, much can be done to reduce the risks. Munich Re supplements its compliance measures with comprehensive anti-fraud management ( » Fraud) in all Group companies. These measures include strategies for preventing and detecting fraud and corruption as well as clearly defined steps that are to be taken in response to such incidents.
A network of experts is active
At the Group level, Munich Re's Fraud Prevention Officer leads the activities of a special working group, the Fraud Prevention Committee. It consists of staff members from Compliance, Group Legal, Group Audit, Risk Management, Human Resources and Group Communications. The committee develops anti-fraud management methods and standards to be applied throughout Munich Re.
Based on these standards, each of the Group companies operates its own anti-fraud management system. A "one-size-fits-all" approach is not expedient because the circumstances and risks vary too much from one company or subsidiary to another.
Fraud prevention officers assist management
In some cases, owing to the size of a subsidiary or the nature of its operations, its management is assisted by a local Fraud Prevention Officer, who develops anti-fraud measures meeting the needs of that particular company. The local officer also informs Munich Re's Fraud Prevention Officer of any suspicions early on. Such reports include all internal fraud-related facts, losses inflicted by third parties and any ongoing transactions that entail reputational risks for Munich Re. Reported cases of fraud or suspected fraud are thoroughly investigated with the help of either appropriately qualified Group Audit staff and/or external specialists.
Group Audit supports anti-fraud management
Along with carrying out compliance measures and cooperating in the Fraud Prevention Committee, Group Audit also supports Munich Re’s Board and managers in performing their supervisory duties and effecting appropriate, risk-oriented anti-fraud management. These auditing and consulting services help to improve our processes, structures and systems and to minimise the risks.
Group Audit enhances effectiveness
In close collaboration with our subsidiaries, Group Audit furthers the development of rules, processes, methods and tools to be used for auditing within Munich Re. This ensures that the Board is advised of all processes and transactions of relevance for audits and is supported in applying uniform controls at all our subsidiaries. Group Audit's activities, which focus on monitoring risks and assessing the effectiveness of the control systems, are key to successful anti-fraud management.
