When it comes to internal problems in the business world, there are two types of fraud that can be very difficult to detect – accounting fraud and procurement fraud. In both cases, trusted employees can devastate a business, leaving a trail of financial difficulties and disillusionment. So we’re particularly pleased to announce that the British Standards Institute has just released a new standard on one of these topics! BS 10501, “Guide to implementing procurement fraud controls,” can help the management of every organization review and improve the controls that minimize the risks associated with this type of fraud.
This new standard is definitely part of the risk management profile standards that have been released in a wide variety of sectors lately. Specifically geared towards improvement of the purchasing function, it has guidance in a number of essential areas for concern.
Like all areas of risk, the first step is the identification of the risk itself. Once identified, the user of the standard will then get specific information on how to mitigate this risk. In addition, guidance is offered on how to actively manage related challenges in the business process. The standard covers how to detect, report and respond to potential fraud, and how to implement and monitor controls to minimize opportunities.
No matter the size or the mission of your organization, fraud of this nature is a real threat to the integrity of your group. Your company must be aware of the types of fraud that exist and what controls minimize the potential for each. You need to remember that reducing temptation and the potential for fraud is in everyone’s interest. And you need to remember that this type of criminal activity is often the least reported and least litigated type of loss for a company.
With all the challenges every organization faces, reduction of risk when possible only makes good business sense. You’ll find BS 10501 to be a great starting point to tightening up your purchasing process to make it more effective and less likely to be abused.
You can get your copy from the Document Center webstore at www.document-center.com. Or contact our staff by phone (650-591-7600), fax (650-591-7617) or email (info@document-center.com). You’ll be pleased to be working with experts who can help you identify and maintain those standards essential to your compliance efforts. And you’ll be amazed at the wide range of products and reports we offer to support that effort. Make us your Standards Experts!
