An organization’s culture that is overly trusting of its employees, does not consider fraud risks or value integrity, or is tolerant of fraud and abuse is a breeding ground for all forms of misconduct.
The tone set by top management is key to communicate throughout the organization that they embrace integrity and a proper business judgement. The kinds of behavior that are permitted by the organization, how allegations of fraud and abuse are handled, and how positive corporate behavior is communicated and reinforced will have a substantial impact on the organization’s culture.
A 2018 Association of Certified Fraud Examiners' Report of the Nations on Occupational Fraud & Abuse estimates that the typical small business organization will lose 5 percent of annual revenue to fraud, with the median loss from a single case of occupational fraud being approximately $130,000.
Additionally, the report states that more than 22 percent of occupational fraud cases resulted in a loss of at least $1 million! Additionally, a fraud scheme’s median duration is typically 16 months before it is detected.
The costs of addressing the risks of fraud and misconduct are small when compared with the huge losses that can result from the misappropriation of assets. Fiscally responsible organizations should implement a combination of proactive measures to manage the risk of fraud and misconduct, such as developing and implementing a comprehensive fraud risk strategy and ethics programs.
Below are some considerations in mitigating the risks of fraud waste and abuse in organization:
Vantaca’s Balancing Act
Audrey Elsberry
-
May 17, 2024
|
|
Channel, UNC Law School Aid Wilmington Small Businesses
Audrey Elsberry
-
May 16, 2024
|
|
Developers Mark Opening Of $78M Apartment Project At Riverlights
Staff Reports
-
May 17, 2024
|
|
Two Apartment Projects Pitched For Kerr Avenue
Emma Dill
-
May 17, 2024
|
|
As Hurricane Season Heats Up, How Do Builders, Laws Prep Homes For Storms?
Emma Dill
-
May 17, 2024
|
Outdoor dining spaces add another dimension to dining in the Port City and, in some cases, take a restaurant’s brand to new heights. ...
A museum would continue to support those military families and honor submarine veterans but also serve as a way to provide science and math...
The YMCA of Southeastern North Carolina has about 13,000 members; approximately 11,000 live in the greater New Hanover County area....
The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.