This has article has been kindly provided by AKD Services who provide an innovative approach to fraud and security risk management.
A large multinational organisation, for example, is often able to withstand a serious fraud. They can absorb any losses relatively easily. Look how the banks have recently put aside millions for various contingences such as the mis-selling of PPIs. Yet a SME could face financial ruin if they lose just a few thousand pounds.
By taking a strategic risk management approach, an organisation can quickly assess their fraud and security risks and define any vulnerability from both an external and an internal perspective. But how does an organisation especially a SME achieve this with minimum costs and time? By using a relatively simple methodology they can easily assess implement a four stage approach to fraud and security risks that has been introduced in some very large companies to great effect but can equally be introduced in SMEs. The four stages are:
It is hoped that the third stage (investigation) would not be necessary but every organisation should have a plan should the worst happen. But if it does, the big question is not what happened but how did we let it happen and how can we stop it happening again?
This process is simple to introduce and very cost efficient and will turn fraud and security risk management from a necessary evil into a routine part of your business process.