With losses increasingly due to fraud, companies must begin to consider ways in which they can protect against misappropriation of assets. Based on the 2018 Report to the Nations on Occupational Fraud and Abuse published by the Association of Certified Fraud Examiners, organizations lose 5% of their annual revenues to fraud.
Interestingly, while management implementation of appropriate internal controls can mitigate against the risk of fraud occurring, they may not be able to prevent or detect fraud in cases of employee collusion. Because of this risk, companies should consider obtaining a product known as “fidelity insurance” to protect against employee-related fraud. In addition, they should familiarize themselves with procedures to follow if management suspects fraudulent or dishonest employee behavior.
Read the full article on CFO.com, here.