9. Fraud-Response Plan
A Fraud-Response Plan serves as an insurance policy against disaster. No one wants to encounter a disaster, but if difficulties come, insurance provides a level of comfort against the loss. Similarly, it’s best to prepare long before a government investigation begins.
In the absence of a plan, people may not know how to respond if they’re confronted with questions—or a raid—by government agents. By responding without intention, people may inadvertently expose themselves, their colleagues, and their company to further liability.
The best time to minimize complications from a government investigation is before the investigation begins. Yet with millions of regulations in existence, a company may face a problem at any time. Good preparation in advance may lessen liability. By anticipating aggressive behavior for investigators, team members can respond in ways to protect rights and get better outcomes.
Previous modules offered insights we believe leaders should consider when designing an effective compliance program and risk-management strategy for their organizations. The more leaders customize their compliance and best-practice programs, the better they safeguard against intrusive investigations that could threaten the business and its team members.
Regardless of what efforts team members make to protect a company, possibilities always exist for a breakdown, or for a rogue team member that could expose the organization to liability. For that reason, all companies should create a plan that would coordinate a team response in the event of an inquiry from regulators or law enforcement.
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