Gaining an understanding of the C-suite is a critical step in fraud detection and prevention, especially as it relates to the known fraud risk factor of “tone at the top” and other qualifiers around leadership. Also fairly well known is the challenge of narcissism. Although narcissism is not uncommonly perceived as a strength, there are many traps in this personality feature of a CEO. It can also be true of other members of the C-suite.

Executive assessment data related to narcissism as well as other gaps including emotional competency as well as distracted or divided attention highlights the psychological risk factors for fraud at the top of an organization that can lead to a bad bushel or bad crop. This chapter explores several characteristics and offers real-world case examples such as Baxter, Enron and HealthSouth regarding how executives lead teams during challenging times. Noteworthy emphasis is placed on the importance of organizational culture and the proper “tone from the top.”