When companies start to recover they focus primarily on profitability and providing better customer service. Naturally these items are important, but it is even more important to watch the back end of your company for fraud, waste, and abuse.
While most executives are focused on the front of the business making money, the opportunistic fraudster can reduce those profits through risk vulnerability points. Risk vulnerability points are gaps or holes where fraud, waste and abuse typically occur.
Opportunistic fraudsters quietly living inside a company are looking for any opportunity to steal from you. They will test risk gaps by siphoning just a small amount at first, and then over time (if they are not caught) they will continue to increase that amount. Before you know it, your company is losing millions.
Here are 10 tips to reduce the internal fraudster from stealing your hard earned dollars inside your company:
1. Evaluate the Flow – Evaluate your companies process flow from front to back. Implement two-step approver protocols to protect your data and keep your eyes open, as most tend to focus only on current initiatives, experiencing tunnel vision to the process.
2. IT Updates – Leverage technology to identify suspicious aberrances throughout your company. Stay up to date with your software programs.
3. Anti-fraud Education – Incorporate a great new hire orientation program when new employees start with the company. Conduct discussions on ethics, professionalism, and anti-fraud programs.
4. Employee Appreciation – Be sure to incorporate employee appreciation programs throughout the year, because employees who love their company will indeed protect the company.
5. Mentorship – Be sure that managers are great leaders, and good mentors for their employees. Managers who are accessible to their employees will know what is going on internally within their departments.
6. Zero Tolerance – Make mandatory annual training on ethics, professionalism, and zero tolerance for fraud.
7. Report Fraud – Have an anti-fraud hotline allowing anyone within the company and out, to call anonymously to report fraud.
8. Safety Counts – Work place accidents can be costly to the company profits. Have employees actively participate with safety programs that are interesting. (Example: Have employees submit designs for the work place safety t-shirt, and the winner receives a week PTO).
9. Create Fun – When you are having fun at what you do, it provides a great environment of trusting employees. (Example: Provide motivational training books to employees, because when employees want to improve themselves, naturally that in turn helps the company)
10. Stay Nimble – Never stay flat-footed thinking your risk management protocols are solid. The best risk management protocols are always evolving and incorporating the inputs from all departments within the company.
KEEP OUT the opportunities for the fraudster to steal your company profits! Use these 10 tips to keep your profits inside your company walls.
Our mission at RIM is to protect your company’s assets, lessen exposure, mitigate claims losses, reduce loss ratios, identify vulnerabilities, provide proactive control measures and deter fraudulent acts perpetrated against your company, its subsidiaries, and the customers to which you serve. Linda Webb, aka The Fraud Dog, is the Founder and CEO of Risk Integrity Management, LLC.
Follow @TheFraudDog on Twitter
Like TheFraudDog on Facebook