Reputation damage in India most severe impact of frauds: KPMG survey
Synopsis
Regulatory changes have not succeeded in reducing frauds, with 79% respondents identifying no reduction, the survey said. Key areas prone to frauds include procurement (50%), sales and distribution (30%), e-commerce (11%), manpower (6%) and inventory (3%).
By Ratna Bhushan, ET Bureau
Frauds and leakages continue to challenge organisations in India's consumer markets sector amid rapid growth and technological evolution, KPMG India said Thursday, releasing results of a survey titled ‘evolving frauds in the consumer markets sector’. According to the survey, 72% of respondents identify reputational damage as the most severe consequence of frauds.
The survey was conducted across 75 industry experts from finance and compliance domains across FMCG, consumer durables, agriculture, retail, and e-commerce sectors, KPMG said.
61% of respondents said they wanted implementation of tech-based early warning signal mechanisms.
Mustafa Surka, partner – forensic services, KPMG India, said in a statement: “The consumer markets sector is rapidly transforming and growing. Consequently, the frauds in the sector are also evolving, leading to substantial leakages for organisations. It is imperative for organisations to be agile and mitigate these leakages in a timely manner by investing in technology and developing a strong monitoring mechanism.”
The survey underscored the necessity for businesses to remain agile, adaptable, invest in cutting-edge technology, and develop a robust fraud risk management framework.
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Regulatory changes have not succeeded in reducing frauds, with 79% respondents identifying no reduction, the survey said. Key areas prone to frauds include procurement (50%), sales and distribution (30%), e-commerce (11%), manpower (6%) and inventory (3%).Empower Your Corporate Journey with Strategic Skill Courses
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61% of respondents said they wanted implementation of tech-based early warning signal mechanisms.
Mustafa Surka, partner – forensic services, KPMG India, said in a statement: “The consumer markets sector is rapidly transforming and growing. Consequently, the frauds in the sector are also evolving, leading to substantial leakages for organisations. It is imperative for organisations to be agile and mitigate these leakages in a timely manner by investing in technology and developing a strong monitoring mechanism.”
The survey underscored the necessity for businesses to remain agile, adaptable, invest in cutting-edge technology, and develop a robust fraud risk management framework.
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(You can now subscribe to our Economic Times WhatsApp channel)