Reduce The Risk OF Fraud In Your Business

Reduce The Risk OF Fraud In Your Business

by Rahul M

The vast majority of businesses know that the difference between success and failure can be slim, and this is why it is vital that proper steps are taken to ensure that businesses receive as much as much as they can. One major danger for all firms to take on board is fraud, and there are ways that businesses can reduce the risk of fraud in their business.

Implement Standards from the Top Down

One of the most important ways for a business to implement high standards is to ensure that everyone from the top down is aware of what is expected from. There is a lot to be said for creating an employee manual and making it a mandatory read for all employees. This manual will be used to outline the expected standards from employees and it will help to ensure that rules are not deemed to be arbitrary. When it comes to minimising fraud, ensuring that everyone is bound by the same rules and will be treated the same is a great starting point for all business.

Check References and Undertake Background Checks

There is information available for the vast majority of employees before they take up position with a company, and it is therefore essential that businesses do everything in their power to be informed about their employees. A company should always check any stated references and then carry out all background checks on an employee, and this can include:

Secure all assets, Physical and Virtual

One of the issues that many businesses is that they don’t take proper precautions when it comes to securing their assets. It may be easy to think that all employees should be able to be trusted but many people find that they wouldn’t have any interest in theft until an opportunity is presented to them.

Minimising any temptation that may arise is a smart way to reduce the likelihood of having anything stolen or taking. This is as true for money or items of value as it is for information that may be of benefit or interest to people.

Don’t provide Some Employees with too much Responsibility

One of the most effective ways a business can minimise the risk of theft or fraud in the workplace comes with minimising the level of responsibility an individual has in the role. If someone has sole responsibility for petty cash, wages or any other cash or payment option, you can see how an opportunity for that person to commit fraud can arise. Ensuring that different people have responsibilities will help to reduce the likelihood that one employee will be able to carry out fraud to any real degree.

Make it easier for Employees to provide Information Regarding Suspected Fraud

There are different opinions on setting up a hotline or anonymous way for employees to provide information regarding suspected fraud. Some employees may take offence at the suggestion that fraud is being committed and this can lead to a lack of morale in the workplace. However, another school of thought suggests that if employees know that fraud is being monitored and that steps are being taken to catch people carrying out fraud, they may be less inclined to commit fraud themselves. The phrase about “prevention being the best cure” is well-known and preventing fraud is more attractive and affordable than resolving the issues caused by fraud.

If employees are aware that there is a simple and anonymous way to provide information about anyone committing fraud, they will be far more likely to share this information with the company.

Fraud represents a massive danger to all businesses, and any firm that doesn’t realise the impact that fraud can have on their business is placing themselves at risk. This is why there is a need for businesses to make it very clear that fraud will not be tolerated and anyone committing fraud should expect to be punished in accordance with the law. In this regard, the work of solicitors with respect to fraud may be of great relevance. Knowing what constitutes fraud and the potential problems that a person could face may convince many people that undertaking fraud is not a worthwhile use of their time, thoughts or energy.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.

Leave a Reply

Your email address will not be published. Required fields are marked *