31 Aug 2016 2:35 PM
Over a quarter of SMEs and over one in ten Not-for-Profit entities have been the victim of fraud. A conservative estimate is that the cost of fraud in the UK is the region of £38.4 billion per year.

What Can You do About it?

Start by recognising that you could be vulnerable. A mix of the right policies and procedures can help to minimise your risk.

Five Company Practices That Can Help to Reduce Your Exposure to Occupational Fraud:

Set the Right Tone:

in which honesty and integrity are paramount and dishonesty will be dealt with appropriately.

Employment:

Recruitment policies should include reference checks and background screening.

Increase the Perception of Detection:

Put in place sensible supervisory controls including segregation of duties, proper authorisation processes and management review.  Carry out surprise checks and investigate when you suspect fraud.

Regularly Review:

Review the performance of your business and follow up unexpected variations: eg lower than expected gross profit margin and above budget expenditure could be due to fraudulent activity.

Staff Policies:

Educate your employees about fraud, its impact on the business and how they can help prevent it. Create a culture where staff can raise concerns about suspected or actual fraud and encourage open dialogue. Enforce mandatory holidays and rotate jobs if practicable.

If you would like to talk about what you can do to help reduce your exposure to fraud, please get in touch for a confidential discussion about how we can help.