Fraud Incident

Exercise Info
Type
Tabletop
Scenario
Fraud Incident
Category
Crisis Management
Complexity
Moderate
Duration
120 min
Scheduled
Injects
12
Scenario Overview
The CFO has been arrested and charge with Fraud. There could be significant impact to Barwon water and they will need to do a full review of accounts to understand what has happened.
Learning Objectives
  • Assess the effectiveness of the crisis management team activation process
  • Evaluate the organization's communication strategy with stakeholders
  • Determine the ability to conduct a rapid financial review and risk assessment
  • Test compliance with regulatory notification requirements
  • Analyze decision-making and leadership effectiveness under crisis conditions
Participants
None recorded.
Team Presentation URLs

Share these links with each team before the exercise. Each URL shows only that team's injects.

alpha Team
QR alpha http://www.res-test.online/exercise/299/present/alpha
bravo Team
QR bravo http://www.res-test.online/exercise/299/present/bravo
charlie Team
QR charlie http://www.res-test.online/exercise/299/present/charlie
All Teams / Facilitator View
Master Scenario Events List (MSEL)
drag to reorder
#1 Initial Alert: CFO Arrested
Responded
T+0min Email CEO → Crisis Management Team
all

Subject: Urgent - CFO Arrested for Fraud Team, This morning, our CFO was arrested on charges of financial fraud. We need to convene an emergency meeting to address the potential impacts on our operations and public image. Please prioritize attendance. Regards, CEO

Expected: Crisis Management Team convenes an emergency meeting within 30 minutes.
#2 Media Inquiry
Delivered
T+15min Phone Call Comms Journalist → Communications Lead
bravo

Q: 'Is it true that your CFO has been arrested for fraud?' → We are currently assessing the situation and will provide an update shortly.

Expected: Prepare and issue a holding statement to the media.
#3 Financial Review Request
Pending
T+30min Email Action Interim CFO → Finance Team
charlie

Subject: Immediate Financial Review Required Finance Team, In light of recent events, initiate a comprehensive review of all financial accounts and transactions from the past 18 months. Report findings to the crisis team ASAP. Thanks, Interim CFO

Expected: Finance team begins immediate audit of financial records.
#4 Regulatory Notification
Pending
T+45min Teams / Slack Escalation Regulatory Affairs → Crisis Management Team
alpha

We need to notify the FCA and ICO of the incident within regulatory timeframes. Ensure compliance to avoid penalties.

Expected: Notify FCA and ICO within regulatory windows.
#5 Stakeholder Concern
Pending
T+60min Email Comms Investor Relations → Crisis Management Team
bravo

Subject: Concerns from Major Shareholder Hi Team, We're receiving inquiries from major shareholders about the CFO's arrest. They are requesting an urgent update on how this affects their investments. Best, Investor Relations

Expected: Draft and send a communication to reassure shareholders.
#6 Internal Staff Rumors
Pending
T+75min Teams / Slack Comms HR Director → All Staff
charlie

Rumors are circulating on the internal chat about the CFO's arrest. Staff are worried about job security.

Expected: Issue an internal memo addressing staff concerns and reinforcing job security.
#7 Complication: Data Breach Suspected
Pending
T+90min Email Escalation IT Security → Crisis Management Team
alpha

IT has detected unusual access patterns in the CFO's accounts. Possible data breach linked to the fraud investigation.

Expected: Investigate the potential data breach and assess the impact.
#8 Legal Consultation
Pending
T+100min Phone Call Decision Crisis Management Team → Legal Counsel
all

We need to consult with legal to understand the implications of the CFO's arrest and any potential liability.

Expected: Engage legal counsel for advice on managing potential liabilities.
#9 Recovery Planning
Pending
T+110min Internal Memo Action Crisis Management Team → All Departments
all

Begin planning for recovery and return to normal operations, considering any long-term impacts.

Expected: Develop a recovery plan with clear steps for resuming normal operations.
#10 Hot Debrief
Pending
T+120min Verbal Action Exercise Facilitator → All Participants
all

Conduct a hot debrief to capture immediate lessons learned and areas for improvement.

Expected: Facilitate a structured debrief session to gather insights from all participants.
#11 Customer Outrage Broadcasted
Pending
T+0min Radio Radio Station
all

In breaking news, a very concerned Barwon Water customer has called into our show this morning. They expressed their anger over the lack of transparency and timely communication from Barwon Water regarding the recent arrest of their CFO. The caller is demanding immediate answers and reassurances about the security of their water supply and the financial stability of the organization. We will be following this story closely and bringing you updates as they come.

Expected: Activate crisis communications team to address public concerns; prepare and issue a press release; monitor media channels for further developments.
#12 Breaking News: CFO Fraud Investigation Intensifies
Delivered
T+0min News Bulletin Video ready
bravo

Victoria's regional water provider, Barwon Water, is under scrutiny as the investigation into CFO John Doe's fraud charges deepens. Authorities suggest that the financial discrepancies may be more extensive than initially reported, potentially affecting multiple service areas. The organisation is urged to maintain vigilance as the inquiry progresses.

Expected: Monitor media coverage and prepare a communication strategy to address public and stakeholder inquiries. Ensure internal stakeholders are informed and…