Financial crime can heavily impact companies and even ruin them. How should a company and its advisors respond to allegations that senior managers have been involved in fraud, bribery or corruption?
The case study 'Risking it all' is an interactive simulation of the deliberations during a meeting of senior directors as they seek to deal with whistleblower allegations of fraud and bribery by some of the company’s employees. The scenario depicts the potential consequences should an investigation of this type be approached in the wrong way or otherwise seriously mishandled. Among its many learning points, it covers the importance of conducting an independent investigation, the scope of the investigation and what would constitute appropriate and inappropriate action.
This case-study will lead to discussions on available options and guidance of best practices (Dos and Don'ts). This session is facilitated by members of PwC's forensic investigations team.
Duration: 2h
Language: Available in English
Number of participants: up to 15
Available under intra-company course (i.e. dedicated session on demand)
Objectives
By the end of the training, participants will be able to :
- understand the importance and the scope of conducting an independent investigation while facing fraud and bribery accusations within their organisation;
- know what would constitute appropriate and inappropriate action;
- be aware of potential consequences should an investigation of this type be approached in the wrong way or seriously mishandled.
Content
The case-study highlights and illustrates the multiple temptations of senior company executives:
- in using improper accounting practices with various objectives (revenue increase to match market expectations and achieve individual goals);
- in bribing other corporate or government officials to ensure the gain of lucrative contracts.
Ignoring such issues introduces the possibility of financial statements adjustments, regulatory or criminal prosecutions, other lawsuits, disbarment from government tendering, beaten down share price and destroyed reputation. It is the responsibility of the audit committee to fully capture the company business and the global group chart (local and international). For multinational where the risk is greater, it is a must to promptly enquire as soon as the smallest sign of irregularity is detected. Do not forget your independence and personal liability.
As per the latest EU directive, a specific reporting framework is required in the context of whistleblowing.
It is critical for the audit committee, the senior management and the auditors to know:
- how to react in case of crisis;
- what are the pittfalls in terms of decisions.
The case-study will highlight the various available options, and present the Dos and Don'ts.
Target audience
- Executive and board members
Our lead experts
This training is coordinated by Michael Weis, Partner at PwC Luxembourg. The training will be given by directors and managers who benefit from a strong professional experience in this area.
Michael is lead-partner for the Forensic Services practice and of the AML taskforce.
Michael is regularly acting as engagement leader for a large variety of forensic investigations including AML investigations, remediation and prevention projects in asset management and banking.
In this context he is also responsible for high-profile AML audit missions as part of the legal audit requirements for Luxembourg banks and investment funds.
As key contact of the AML distribution due diligence service for the asset management industry, Michael is regularly involved in country risk assessments and the review of laws and regulations of country AML frameworks.
Michael is coordinating projects with the global PwC forensic network and regularly involved in large scale international projects of PwC for investigations and FTS related work. Michael is part of the Global Forensic Network WG on L&D. as CFE (Certified Fraud Examiner).
Michael is recognised in Luxembourg and abroad as a subject matter expert on AML and forensic matters as a key member of the local industry working groups on fraud at the Institute of Internal Auditors (IIA) and the Institut Luxembourgeois des Administrateurs (ILA) for directors. Michael regularly facilitates workshops and trainings on AML and fraud, both in Luxembourg and internationally, in the asset management and banking sector. Michael is also an active member of the Local Compliance Officer Association (ALCO).
