Fraud Control Plans
One of the most significant plans by universal public companies as well as many private companies is focusing on a fraud control plan. A fraud control plan is generally established to detect, prevent, and have a tactical approach towards fraud that may occur for the company.
Although this may seem like a good approach for incredibly dense companies, fraud control plans these days only seem to be collecting dust. There are many cases of fraud that occur each year for companies, but company fraud plans don’t look to measure up to the level of adequacy.
So the question may arise, why aren’t company fraud plans adequate to detect or prevent the fraud that occurs?
Although companies take as much effort as they can to fight fraud, they are mostly too inadequate when taking advantage of the methods that would help the most. This may occur due to the fear factor of making certain decisions.
A few of the top reasons for companies to dread fraud prevention include:
Similar to maintaining the cost of insurance for health or cars, prevention of fraud is a cost in which companies don’t always see an immediate return. The company management would generally desire profitability through revenue; however, for assessing risk and coming up with risk plans, the boss would find it a little harder to identify its value.
The biggest problem with not being able to implement a proper fraud control plan would be that management would see that the cost spent on a system for fraud detection does not return the value. However, it needs to be understood that in doing so, companies would be able to avoid significant losses if fraud does occur. These losses could have been added up and reinvested for better company goals.
One of the major concerns of companies is the utilization of technology by all companies does bring a sense of greater exposure towards data breaches. However, with the ability to implement a system to battle breaches, counter plans should be imposed. Implementing a technological system as a fraud prevention method would help the company grow by the ability to investigate and determine fraud from occurring.
- A loss in reputation.
Through fraud, a company’s biggest concern would be the disruption in the reputation of the company. Through data breaches, social media has become one of the most popular ways to share information with the public.
Harrington Group International is a company that offers software solutions to companies globally to help improve performance, manage operations, and increase efficiency within the organization.
Harrington Group International offers secure products that would maintain the consistency and the security of information managed by the software. When utilizing the software provided and receiving our services, we can ensure that your data will be managed, monitored, and controlled at optimal standards to ensure the best quality and security for our clients.