Internal control in business or how to combat fraud 

According to our study conducted in partnership with the polling firm Selvitys9 out of 10 professionals claim to have an internal process for combating fraud. By putting in place rigorous procedures and monitoring mechanisms, companies can strengthen their financial and operational security. But what exactly is internal control? What are the key stages in successful internal control? We take a closer look in this article. 

Find out more about our study with Selvitys : our anti-fraud investigations

What is internal control in business? 

Internal control plays a crucial role within companies. This system is based on rigorous standards and enablesidentify potential risks associated with non-compliance with internal procedures. 
In large companies, it is often managed by the HR department.internal audit whereas in smaller organisations, it is often an individual dedicated to this position. 

Internal control is therefore definition of rules to followthe setting up control systems and the checking their application and of their effectiveness. 

The aim is to ensure that the organisation complies with : 

• THE laws 
• THE regulations and standards in force
• THE data and the information of its customers

All this? To control the management of your risks! 

Need to learn more about setting up an anti-fraud project? how to sell a document fraud prevention project internally?

It is important to note that with technological developments and the digitalising the way we workInternal control must adapt to monitor new risks. The stakes are now high for companies: they need to secure their organisation to support their overall performance and development. 

What are the 5 key stages in successful internal control?

Step 1: an orderly environment 

Internal control begins with the implementation of a structured approach tailored to the specific challenges of the organisation. Whether it's a large listed company or an SME, every organisation needs to analyse its resources.

How should she go about it?

The company can start by define your responsibilities. Once this has been decided, it can adapt control systems to the size, nature and activity of its organisation. 

Step 2: Define control strategies 

Once you have defined your company's framework, you need to assess the risks facing your organisation and put in place a risk management plan. action plan. 

In this action plan, don't forget to include : 

• THE regulations to which you are subject
• THE protection procedures that you must respect 
• THE digital tools that can be used

Stage 3: Setting up control systems 

You've decided on your strategy? Now it's time to rely on the operational teams to deploy systems within your company. 

For your internal control to be as effective as possible, it is essential that each employee understands and applies the control mechanisms. The most important thing will be communication and the cooperation between teams. 

To find out more, click here: set up an in-house anti-fraud unit 

Step 4: identifying risks 

As a company, you face a number of risks. To deal with them more effectively, it's important to know what they are and to be aware of them. These risks can be :

• Financial They lead to financial losses for your company. 
• Operational They get in the way of your company's objectives. 
• Compliance-related They are closely linked to the regulations and standards in force.
• Safe These concern the security of information systems, data and employees. 

Step 5: constantly monitor and adapt your strategy

Successful internal control requires continuous adaptation to respond to changing risks. 

It is therefore crucial to regularly check that control procedures are in line with the initial objectives. This reassessment ensures that the systems remain relevant in a constantly changing environment.

The aim? Responding to changing risks, monitor constraints on the ground and the new regulatory requirements. 

Is it worth automating internal control? 

Effective internal control must extend to all departments within a company. With digitalisation and the digital age, controls need to be automated. 

To achieve this automation of internal control, companies can integrate control and compliance tools. These cutting-edge technologies, supported by artificial intelligence, make it possible to continuous monitoring of financial transactions and operational processes. 

Thanks to these systems, anomalies and deviations are immediately detected. Not only do they ensure securing financial flowsbut also a optimising internal audits. 

This automation offers finance managers several advantages: 

• Rigorous compliance
• Reduced risk of document fraud 
• Effective management of the company's overall performance 

Read more on this subject: 7 signs that you need a solution to detect false documents 

What tools should you use to automate your internal controls? 

To achieve the objectives set by internal control and thus optimise their risk management, companies can use software or SaaS solutions. 

In this context, Finovox offers an advanced solution based on artificial intelligence combined with mathematical algorithms. The aim? To offer a tool capable of continuous monitoring of internal processes companies, identify anomalies in real time and thus reduce risks due to human error. 

In addition to fraud detection, the Finovox solution is also designed to be easily integrated into existing systems. In this way, we ensure smooth transition to automated management internal control. 

By investing in tools such as these, companies can strengthen their securitybut they are also optimising their resources freeing up time for higher value-added tasks. 

Thanks to Finovox, internal control is not only safer, but also more efficient and cost-effective. Want to find out more? Contact our experts!