Jailed ex-FairPrice storekeeper deleted WhatsApp messages to hide dealings with a supplier from CPIB
No company wants to think that an employee will commit fraud, but it happens. Companies should prioritise procurement fraud prevention, especially when they begin to increase in size.
Risk is low for small businesses in a start-up phase with just a few employees.
This is because most small companies allow for open communication and closer insight into the procurement process. Once a company is in growth mode, they begin to hire more employees, open offices in multiple locations, and have numerous employees with company credit cards, which complicates the #procurement process cycle, one of the most important cycles for any business.
Companies should always be thinking about how to prevent #procurementfraud within the organisation and take steps to provide a more conducive environment for employees. Procurement risks are why many companies switch to digitising their accounts payable. The presence of procurement #fraudprevention technology makes their transaction and purchase order history significantly more foolproof than manual bookkeeping.
According to the Association of #CertifiedFraudExaminers (ACFE), there are three factors required for employees to engage in #fraud: Perceived Financial Pressure, Perceived Opportunity, and Rationalization.