The risk of falling victim to financial crime increases with a company's size and the rising complexity of its structures and workflow. The financial loss and consequences can be devastating for the company's reputation. Munich Re is resolutely countering this risk with an effective system for combatting fraudulent activities.
Financial crime may take on many different guises, ranging from
direct asset losses and corruption to manipulation of accounts.
Although there is no such thing as complete protection, much can be
done to reduce the risks.
A holistic approach in combatting fraudulent activities and
comprehensive prevention is of central importance. It is for this
reason that Munich Re has assigned these Group-level functions to a
separate Group Compliance Department, which underlines the
importance of the matter and creates the basis for a stringent
procedure across the Group. Our "Policy on Combatting of Financial
Crime" contains minimum requirements to be observed by all Group
companies. A process of coordination with Group Compliance
guarantees adherence to the minimum requirements, but allows some
leeway in defining measures, depending on the risk situation and
observance of local regulations.
Explicit specifications for the behaviour of employees in handling
transactions are included in the measures. Clearly defined
processes and responsibilities, effective checks which also monitor
the example set by management, in addition to training, heighten
employees' awareness of the fact that every single individual can
make a contribution to combatting fraudulent activities. If
employees notice that something is amiss or their suspicion is
aroused, they have the option of contacting the respective persons
in Group Compliance
and Group Audit, or their line
managers.
Electronic Whistleblowing Portal
Employees can also turn to our external ombudsman or use the electronic
Whistleblowing
Portal. Our clients, contractual partners and other third
parties can also contact the ombudsman or place a message on the
Whistleblowing Portal. Anonymous messages can also be submitted.
The system lets the user create a sort of mailbox to allow
communication while preserving anonymity. The messages on the
Whistleblowing Portal are actioned by the specially trained workers
in Group Compliance.
Munich Re also provides training to heighten employee awareness of
the subject and the risks, and provide information on hazard
characteristics. Training sessions have been developed that are
aimed at top management. These are held jointly by Risk Management,
Group Audit and Group Compliance.
Measures to uncover suspicious circumstances
Specially trained staff members in Group Audit conduct appropriate
investigations in the event of concrete suspicion of fraudulent
activity. A confirmed suspicion always entails consequences. Munich
Re tolerates no fraudulent activity, and takes action based on
industrial, criminal and/or civil law, depending on the individual
case. To supplement the actions outlined, Group Audit supports the
Board of Management and managers in their controlling functions,
providing auditing and consulting services.
The combatting of fraudulent activities and the enhancement of an
effective system have uppermost priority at Munich Re. Our system
is thus subjected to continual monitoring, and to ongoing
development on the basis of the latest findings and trends.
This publication is available exclusively to Munich Re clients. Please contact your Client Manager.
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