10 ways to reduce occupational fraud.

• Position: FRAUD

The Association of Certified Fraud Examiners estimated that $994 billion was lost last year by United States corporations due to occupational fraud. Jonathan Marks, a partner who leads the Fraud and Ethics group of public accounting and consulting firm Crowe Horwath, suggests that today's economic unrest makes it easier for employees to set fraudulent schemes into motion.

Since the ACFE report notes companies with anti-fraud measures suffered significantly lower losses than those without programs, Marks suggests that organizations follow these 10 steps:

1. Assess risk. Identify what activities are outsourced, moved between different groups and transferred across borders and which are performed by the board of directors, top managers, employees, suppliers, customers, competitors and external contractors. Recognizing risk spots determines where prevention and detection mechanisms should be placed.

2. Assess corporate culture. Identify the ethical tone of the organization and pressure points that may motivate employees to cross the line.

3. Know who you hire. Check references and verify backgrounds for all and conduct criminal and financial background checks on prospective employees who are under consideration for financially sensitive positions.

4. Create an ownership environment. Employees who act and feel like owners are generally less likely to steal. A culture of ownership promotes shared responsibility and a more committed workforce.

5. Remove temptation. Organizations should perform regular ethical and social hacking to make sure Internet access and systems controls are secure. Charge...