DETECTION As fraud never be completely eliminated and the longer a fraud continues the more costly it is, it is essential that an effective FRM policy includes sound and cost effecient fraud detection procedures.

RESPONSE An organization must be prepared to respond to allegations, accusations and indications of potential fraud, as an inappropriate and/or untimely response can result in: character defamation and/or unlawful dismissal lawsuits; loss of evidence; staff ill-will; loss of credibility; unnecessary continued losses.

All organizations regardless of ownership structure and size are exposed to fraud risk, and the failure to address such risks can have costly and unnecessary consequences. The initial step in a FRM program is to identify and assess the potential fraud risks to which an organization is exposed, from which appropriate and cost effective prevention and detection programs can be developed and implemented.

PREVENTION It is usually easier and more cost effective to prevent fraud before it has occurred than it is to detect and respond to allegations of fraud. Many small and medium size organizations rely on "Trust", at CARET we recognize that "Trust" is created through checks and balances that are part of a tailored FRM plan.