Satori works with over 100 Australian & New Zealand high-volume transaction businesses and organisations to gain optimal assurance of their financial, internal audit, governance, compliance, and procurement controls. Assurance is achieved by the implementation of Satori’s Continuous Control Monitoring Solution, the only of its kind on the market.
What we know
In a 2022 study of Satori’s Vendor Risk customer data, at least 1% of procurement spend was found to have errors. The average time to recover those losses was 22 days. The data study also found that on average 3-5% of master files contained errors.
As our world becomes more automated and online, it is easy to believe that people make mistakes, but computers do not. Business systems are limited by the data that is entered into them. If an error is entered, the error can be reproduced – at robot pace.
The Data Scientists at Satori see this as the greatest weakness of ERPs (Enterprise Resource Planning Tools) that are implemented sans data cleansing or without ongoing monitoring. Satori Director, Troy Nicholson said “Most Masterfile information is often manually updated. With Vendor Master Files they are always changing and, external to the file and the business, vendor businesses change rapidly and are affected by influences beyond their own controls.”
Director of Growth Markets at Satori, Mark Bookatz, commented on the influences seen in the study. “Satori’s project managers are seeing a huge investment in ERPs. They are the backbone of many company’s financial and operational systems. However, they do not provide protection against errors and oversights. Despite the level of automation, we see quite a bit of manual capture and manual overrides. I do not think we will ever get away from that totally, and so with that comes the fact that errors will creep in, and we need to be guarded against that – not to mention actual fraud!”
Companies have policies and controls but not everyone follows them or understands them. There is no remedy for human error in data and ERPs but there are ways to protect businesses against the damage they can cause. It is not only error-riddled data. With a lack of monitoring, opportunistic Fraud rears its ugly head.
The ACFE 2020 Global Study on occupational fraud and abuse shows these statistics for the average organisation:
– 5% of revenue per annum lost to fraud
– It takes on average 14 months to detect
– The median value of loss is $125,000 USD per case
– Globally equates to $4.5 trillion USD per annum
– The largest contributor at 86% is Asset Misappropriation. Fraud that happens from within or it is collusion with internal parties, is a serious matter to consider.
If you have or are implementing a new ERP, a continuous control monitoring solution will prepare and protect your business.
To learn more about saving your company from data risks and errors in your ERP watch our 30-minute panel webinar:
Procure to Pay – What is your ERP not telling you? Watch Now
200+ APAC organisations trust Satori for their Continuous Control Monitoring including Afterpay, Auckland University, Coca Cola European Partners, Coates Hire, Flight Centre, JB HI-FI, Healthshare NSW, Lendlease, Optus, Qantas, Metcash, Scentre Group, Sydney University, The Good Guys, Virgin, Volkswagen Group and many more.