Governance and management, what are their roles in minimizing fraud?


The life of any business relies on management as a key mitigator of organisation risk and its alignment of the expectations set by governance (Butler, 2008). I have experienced a failure of this at old workplace where a young colleague, struggling to make ends meet decided to steal over $1,000 while counting the tills at the hotel and was eventually fired. A couple of weeks later, a repeat of the same theft occurred by a different employee and the same action was taken. Management failed to align themselves with the processes and policies set by governance which in turn has caused a poor culture increasing the susceptibility of theft in the business.  

Governance role is to converse with stakeholders, set frameworks and organisation goals that should be implemented by management. Management should then plan, build, run and monitor these expectations in order to create a cohesive organisational setting and to ensure risks are under control (De Haes, S., Huygh, T., Joshi, A., & Van Grembergen, W. 2016). Principle four of COBIT 5 framework highlights the importance of this cohesion between governance and management and establishes culture, processes and policies as the enablers that allow for this.
Overall, I believe an enterprise can only be successful if governance and management are both executing their separate roles properly.


A beginnners introduction to COBIT 5


References
Butler, Y., 2008. Governance in the Boardroom, 'How Project Management can deliver Organisation Strategy'. [Online]
Available at: https://iccpm.com/sites/default/files/kcfinder/files/YButler%20The_Role_of_Project_Management_and_Governance_in_Strategy_Implementation%20160808.pdf

Haes, S. D. H. T. J. A. W. V., 2016. Adoption and Impact of IT Governance and Managment Practices: A COBIT 5 Perspective. Internation Journal of IT/Business Alignment and Governance.


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