insideKENT Magazine Issue 24 - March 2014 | Page 147

BUSINESS

BUSINESS FRAUD
WHAT TO LOOK OUT FOR AND
HOW TO MITIGATE ITS RISK

acceptance procedure whereby take up is signed off by an authorised
individual outside the of the selection process.

Times are tough; austerity continues to bite and making both a decent
profit and turning that into cash is a major challenge for all businesses.
However, have you taken steps to make sure your business is fit and able
to ride the recessionary waves by:

MANAGING YOUR BUSINESS FRAUD RISK

• Understanding your market and its competitive forces.
• Devising and implementing a strong sales process and customer care
programme.
• Reviewing your business costs and maximising the return on your outlay.
• Implementing and executing an achievable business plan.

First and foremost you cannot completely eliminate fraud risk from your
business but you can take certain steps to minimise:
Create a clear business policy on attitude to fraud – many organisations
take a zero tolerance approach and this could be a wise decision. The
policy should not just be words in your staff handbook or intranet but should
be actively communicated by the business owners. Think of parenting – it
is the parents that set the right example to their children but the children
must take responsibility for their actions.

You have? So, all fine and dandy? You would like to think you are well
positioned but I suggest you consider one other matter; a matter that really
costs money and reputation – Business Fraud.

Consider the business control framework – is it appropriate – does it
mitigate our fraud risk to an acceptable level. There is no right answer to
what level and types of controls a business should have but you would be
negligent to overlook a system of checks and balances.

What I will do in this article is set out which signs you need to look for in
your business that may indicate Business Fraud and then give you some
guidance as to how you can effectively manage and mitigate this risk.
BUSINESS FRAUD SIGNS

Consider running employee fraud awareness training – encourage
openness within your business and give people a mechanism to report
concerns. A loss to the business via fraud affects the innocent – i.e. inc