Abu Dhabi Center for Corporate Governance (ADCCG), an initiative by the Abu Dhabi Chamber of Commerce and Industry, has organized a seminar on “The Role of Fraud Risk Management in the Overall Corporate Governance Framework” at the Chamber’s Tower in Abu Dhabi.
The seminar witnessed the attendance of Abu Dhabi Chamber Board Member Her Excellency Reed Al Dhaheri and more than 100 representatives of the biggest companies operating in the Emirate of Abu Dhabi.
His Excellency Mohammed Helal Al-Muhairi, Director General of the Abu Dhabi Chamber, said that over the past ten years the concept of governance has become one of the most used concepts by economic and financial entities. He added that such entities are racing to adopt the concept of corporate governance and implementing it in its different internal and external affairs in order to develop their investments, attract more foreign and local investments, increase their savings, maximize revenues, create new job opportunities, limit the immigration of national capitals, motivate for work and productivity and increase their credibility.
Al-Muhairi pointed out that in order for practical implementation to the concept of governance to achieve its objectives and ambitions, it must be concentrated on very important issues for such companies including internal monitoring and risk management. “The importance of internal monitoring comes from being a controlling and directing element for all the operations of the company with the aim of increasing their efficiency, profitability and productivity as well as ensuring their continuous growth,” he said.
He added that the subject of fraud is one of the most important challenges of any company regardless of its size, “which necessitates the implementation of corporate governance in a way that allows Boards of Directors to perform active and sustainable roles, in order to identify risks and to measure their probability, thus being able to lay down a plan to face such risks, reducing them and preparing to face any future crises or threats.”
The Director General noted that the UAE was proactive in implementing the concepts of governance in all its references, approaches and dimensions in public and private entities, which resulted in creating a healthy business environment, reflected on the performance and fame of its companies transforming the UAE into a destination for a large number of regional and international companies which took from the UAE a launching pad for their regional and international operations.
Al-Muhairi asserted the awareness of the ADCCG in giving the opportunity for economic entities to update their information on the vitality of implementing governance and the mechanisms of achieving that perfectly in a way that contributes to realizing more growth and development. He praised the cooperation between the ADCCG and KPMG for organizing the seminar, which will define the strategic relationship between corporate governance and the role of fraud risk management by discussing the most prominent aspects of governance and its importance in securing a healthy business environment.
For their part, Mr. Murray Stewart and Mr. Syed Kauzal Ali Rizvi, who are both Directors of KPMG Forensic Consulting for the Lower Gulf Region and forensic specialists in the areas of Fraud Investigation, Fraud Risk Management and Anti-Money Laundering, addressed the attendance and gave an informative presentation, focusing on delivering a clear definition of fraud with illustrative examples of global and regional fraud incidents, fraud trends, red flag indicators of fraud, practical fraud case studies and the constituents of an appropriate fraud prevention framework, including a code of ethics, fraud risk assessment, and the benefits of a whistle-blowing hotline and a fraud response mechanism.
The presentation provided a very clear insight to the attendees on the importance of addressing fraud risk as an on-going and integral responsibility of Boards, in their quest for good corporate governance.
Murray Stewart made the salient point that: “good corporate governance dictates that Boards assume responsibility for ensuring that the company integrates ethical standards into the way it operates, which is a more ambitious target than simply developing a Code of Ethics and implementing a whistleblowing line.”