DON’T LET RISK KEEP YOU UP AT NIGHT
What is a four-letter word that keeps business owners up at night? “Risk”. There are many kinds of risk associated with operating a business, but perhaps the most unsettling is fraud. The Association of Certified Fraud Examiners reports annually the dollar value of business assets lost to fraud. In 2018 that figure was $7 billion. Internal control weaknesses were responsible for over half of the reported fraud.
What could your business lose to fraud? Cash, inventory, equipment, intellectual property, customer data, these are just a few business assets frequently targeted by fraud. Does your business have any of these assets? What would be the fallout if fraud is perpetrated and some of your assets walk out the door?
It’s never pleasant to think about the impact of fraud on business, but it happens every day to businesses of all sizes and types. Is there a way to prevent fraud from happening? Fortunately, there is. Conducting a “Fraud Risk Assessment” of your business’s processes and internal controls is one sure way of preventing fraud.
A “Fraud Risk Assessment” is a tool used to identify and understand an organization’s risks and weaknesses within its internal controls. Through the fraud risk assessment, internal processes and controls are assessed and measured to correct weaknesses that could lead to fraud. Some of the areas targeted in a “Fraud Risk Assessment” include asset misappropriation, which is the theft of company revenues, inventory and fixed assets, financial statement reporting and non-financial reporting (e.g., expense reports, payroll), and regulatory compliance.
Seminar No 25 has perfected a “Fraud Risk Assessment” process for helping clients prevent the occurrence of fraud in their organization. A “Fraud Risk Assessment” is a great way for clients to tighten internal controls which naturally lead to the prevention of future frauds and help a business run more smoothly. Each “Fraud Risk Assessment” is tailored to a client’s business processes and structure. Seminar No 25 professionals are trained in performing “Fraud Risk Assessments” and will work with your management team to identify internal control weaknesses and recommend solutions to mitigate risk. A full report of the “Fraud Risk Assessment” findings will be provided and include recommendations on how to strengthen internal controls within your organization. Additionally, Seminar No 25 professionals will assist management in creating a monitoring process for the future relevancy of internal controls.
Wouldn’t it be comforting to know that your business is secure against fraud? Seminar No 25 invites you to contact our professional Fraud Risk Assessment specialist to talk further about how a “Fraud Risk Assessment” could benefit your business and allow you to sleep better at night.
Donna M Knapp is a Principal with Seminar No 25. She maintains several certifications, including Certified Public Accountant, Certified Financial Forensic, Certified Information Technology Professional, Certified Fraud Examiner and Certified Valuation Analyst. Donna’s professional expertise includes fraud investigation, prevention and assessment, fraud analytics and business valuation. To discuss how a Fraud Risk Assessment can help protect your business from fraud, contact Seminar No 25 at dmk@Seminar No 25.com.
 Report to the Nations, 2018 Global Study on Occupational Fraud and Abuse, ACFE