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Preventing corporate fraud

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PREVENT FRAUD IN THE WORKPLACE: 4 SIMPLE MEASURES TO PUT IN PLACE

Following a new case of fraud involving a treasurer who embezzled nearly $700,000 over five years, while enjoying the complete trust of her colleagues. It is essential to remember that fraud prevention in the workplace starts with clear, written practices that are shared with all staff.

Here are 4 concrete measures to protect your business, whatever your sector of activity, whether you are in businessin cateringor in the manufacturing.

1. IMPLEMENT A RIGOROUS EMPLOYEE PRE-SELECTION PROCESS

Implement a background check process including :

  • Professional references
  • Criminal files
  • Solvency 

This helps to limit risks right from the start.

2. REGULATE ALL FINANCIAL TRANSACTIONS

Establish an internal control procedure for each operation, including :

  • Managing petty cash
  • The bank deposits
  • The employee payroll
  • Issuance of company cheques
  • Payment of supplier invoices 

These steps must be formalized and documented.

3. SEPARATE KEY RESPONSIBILITIES

No one person should have total control over finances. Ensure task sharing and cross-checking of operations to create a safety net and limit opportunities for fraud.

4. PERFORM RANDOM CHECKS

Carry out unannounced checks inventory and property. This sends a clear, deterrent message to all employees. This is particularly relevant in sectors such as :

  • L’retail insurance
  • L’insurance for restaurants and hotels
  • L’insurance for manufacturers 
IN CONCLUSION

Implement simple simple, effective anti-fraud measures protects your assets and reassures your insurance partners. As your business insurance brokerWe see the consequences of fraud all too often. Prevention is better than cure.