Unauthorised acts are those which are executed without any documented authority for that person. Unauthorized acts are normally undertaken with a view to achieve personal or business gain and often undertaken without any regard to the internal policies and procedures. Preventing unauthorized acts can be difficult as the act is often done by the time it is identified. However the following measures will help companies to prevent illegal or unauthorized acts. These points normally are part of governance, policies and procedures and part of the overall risk management framework of a company. 1. Strengthen the governance structure. To be highly successful in preventing illegal acts, companies should strengthen the governance structures. Changes include creating committees to review proposals before been executed. Supervisory reviews, review by other department heads etc all include a governance structure that includes cross department reviews. 2. Enhance internal reporting. Reporting, since a detective control, will identify illegal acts only once done. However, timely and detailed reporting will help management to see trends, and patterns in transactions. An unusual trend can trim losses and help identify the person entering into fraudulent transactions. This can help in damage control and prevent future acts. 3. Enhance the internal control framework. Finally, the best way to prevent illegal acts is to enhance internal controls. Segregation of duties, rotation of duties, maker checker controls all help to catch the bad guy. These small checks are easy and cheap to implement, but often overlooked as a great tool. For assistance on how to implement these changes, please email at services@riskpro.in