Preparing for Basware Connect UK - Rich Lanza
Friday, 13 Nov 2015
Guest Author: Rich Lanza
Finance & Fraud Detection Expert
In rounding out my slide deck for the upcoming Basware Connect event on Preventing Fraud in Accounts Payable, I wanted to share three truths we can't lose sight on as we go into 2016:
1) Fraud is One "F" Word We Can't Avoid Saying - While some F words are used extensively in a business setting, Fraud is an F word that few want to consider given the feelings it dredges up about others. However, we need to maintain professional skepticism that the person next to you or your vendors may have pressures that lead them to commit fraud against your company.
2) A Good Offense Leads To a Good Defense - Prevention is a key part to ensuring a successful fraud reduction program. One of the best prevention methods is automated controls which stop issues before they start. Prevention also brings with it the silver lining of deterrence which is the true secret to ensuring long term program success.
3) Surveillance Has Been Proven to Reduce Fraud by Two-Thirds in Size While Timeframes to Detect Fraud Drop in Half - Per the ACFE’s 2014 Report to the Nation on Fraud, a management tip detected fraud within 18 months and at a cost to the organization of $149,000. However, an organization using surveillance and monitoring reduced fraud costs to $49,000 while the time to detect in months dropped to 9 months using surveillance. From police forces using modeling to reduce crime to financial professionals reporting on company payment trends, surveillance acts as a safety net to manage cost leaks within the organization.
Looking forward to sharing more on my past couple of decades in protecting companies from accounts payable fraud. As we will see in the presentation, the research points to the procure to pay process being the top area for asset misappropriation in any company, regardless of size. Focus on this “F” word can’t be ignored any longer.
Hope to see you all at Basware Connect UK - please do register at http://baswareconnect.com/uk/basware-connect-uk for your place.