Jonny J. Frank is managing director of Decision Strategies International, an investigative consulting firm that specializes in consulting with corporations on internal fraud prevention and investigation. His firm recently added the metropolitan real estate management industry to its cadre of business sectors served when, in the wake of the scandal, several management firms engaged the company to institute internal monitoring procedures. Here's what Frank recommends to boards:
The first thing a board needs to do is to examine almost under a microscope the entire operation of the property, from soup to nuts, and use it as an opportunity to become experts in, and to improve the management of, the property. Boards have to become very hands-on, and ask themselves these questions:
M-M- Is there any system now in place that could result in a problem? For example, is our building superinM-tendent in a position to pay bribes to a violations inspector?
M-M- Is there anyone in a decision-making position within the propertyboard members, staff, management, etc.whose position accommodates the possible willful violation of any laws or regulations?
M-M- What is our property's potential liability exposure as the result of either misconduct and/or accident?