Fraud is about people misusing the process and other people. Fraud can only take place where an individual (or group) sees an opportunity, is motivated to take that opportunity, and can rationalise their actions. Research indicates that, on average, as much as 7% of sales revenue is lost to fraud each year by business, and only a small proportion of the loss is ever recovered. Fraud can happen in any business in any sector, though some sectors face a higher risk. These include retail, land and construction, industrial manufacturing and insurance.
The types of fraud include the theft of cash or assets; fraudulent statements; and bribery and corruption, including kick-backs. All of these have significant consequences for the organisation.
This highly participative workshop provides an overview of fraud risk, the types of fraud, and the steps an organisation should put in place to protect itself.