According to the 2013/2014 Global Fraud Report by international risk consultancy Kroll, the level of fraud increased by every measure in the past year, reversing recent trends. No less than 70% of companies reported suffering from at least one type of fraud in the past year, up from 61% in the previous poll. The damage occurred in a wide variety of ways. Every kind of fraud covered in the survey saw an increase in incidence, with vendor, supplier or procurement fraud and management conflict of interest seeing the biggest growth.
Procurement has an important role to play in the management of the risk of fraud, particularly supplier fraud. Procurement managers must constantly monitor their supply base for any signs of dishonest dealing. Fraud, in business or other aspects of life, is unlikely to disappear entirely, but procurement should make sure that it continues to do its part to hold suppliers, business partners, and themselves accountable.
Procurement Academy’s new E-Learning course on Corporate Fraud Prevention defines corporate fraud, and attempts to explore why people are tempted to commit fraud. It provides guidance on which warning signs to look for, and explains the different actions all employees can take to prevent corporate fraud.
Check out some course extracts on our Youtube channel: