Fraudsters get away with an average of $262,000 – that figure is as high as $1.5m when management executives are involved. Normally businesses only recover an average of 11 per cent of the loss – even in prosecuted cases.
It is easier to prevent fraud than it is to detect it, for example:
Employees using company credit cards while on leave is a difficult exception to manage manually, as it requires constant monitoring of two data sets – Employee Leave Data and Credit Card Transactions.
Using SatoriCCM, if this anomaly is triggered then an alert is sent to Procurement. Procurement asks the credit card holder for an explanation, which is captured into the system. If satisfactory, this exception is returned to the Procurement Manager to close off.
The Implication
We reduce the likelihood of the problem recurring as people realise their credit card use is being monitored. SatoriCCM helps to change employee behaviour by ensuring the effectiveness of your business controls and policies are implemented.
Know Where Your Buck Stops
If you cannot answer a definite YES to the following questions, you should be looking into how Exception Management can help.
- Are you frequently checking that the business controls are still working?
- Are you sure there is no fraud in your company?
- Are all company policies being followed?
- Are you able to monitor 100% of transactions?
- Is every ABN number valid, real, unique and registered?
- Are all invoices paid only once?
- Are you certain there are no duplicates?
- Are employees splitting invoices to get under sign-off limits?
- Are you successfully monitoring for ghost employees?
- Are you sure there is no credit card abuse?
- Does every employee follow the corporate travel & expense policy?
- Are you certain that no employee and vendor addresses are the same?
Satori CCM Diagnostics: What are the Benefits?
The evolution of continuous monitoring has replaced and improved the previous idea of “annual audits”. Now constant vigilance helps you to add value to your business – not just manage risk and monitoring compliance. CCM functions better than an insurance policy – it deals with problems when they happen, not after the fact. It is about seeing the detail without being overburdened by the volume.
It is an independent and objective process that is not dependent on individuals. It includes software, services, set-up, upgrades, on-going monitoring (can easily be set up on a daily, weekly and monthly basis.), training and reporting. There are no up-front software costs and you have the freedom to opt-out after 3 months.
Covered Subject Areas
Satori CCM covers a wide range of subject areas, some of which include Purchase to Payment (Accounts Payable), Vendor Master Files, Payroll, IT & Security and more. It can also include any transactional system that may have an impact on the business and if monitored could help reduce costs, improve revenues and be a possible risk to the business.
Learn more about Continuous Control Monitoring here.
