Have you done all you can to protect your business from fraud?
Believe it or not, but the average organization loses 5 percent of its annual revenues to fraud. Small and large companies suffer the same median fraud losses ($150,000), with smaller businesses often feeling the effects of fraud losses greater than large companies. To prevent fraud, business owners must be proactive and take steps to minimize fraud risks.
Use these ideas to get started!
Control the environment
The ethics that management sets trickles down to the workforce. Set up policies and enforce appropriate conduct through integrity, ethical values, management operating style, and delegation of authority.
Companies should continually evaluate external threats and internal weaknesses. Once these points are identified, threats and weaknesses can be reduced and monitored, if not eliminated completely.
Strong and concise communication allows employees to identify, capture, and exchange information readily. Effective communication ensures that the right information flows to the right people inside and outside of the business.
Control activities that your employees do by authorizing transactions, accounting reconciliations, performing annual employee reviews, and physically securing the assets of the company.
Monitor your team
Risk factors continually change. Be sure to regularly perform audits, checks, and conduct reviews to best control performance and reliability.
More often than not, it doesn’t take much for a business to suffer financially from a spoke in the wheel. Contact the team of experts at Hoffman Brown Insurance Company, serving Sherman Oaks and neighboring cities of California, to secure the right business insurance for your needs and protection.