A blog by Martin Williams, external affairs spokesman of Graydon UK, focusing on business risks - from fraud to late payment. Martin has has spent the last 35 years in the credit information industry, and has been with Graydon UK, one of the top five commercial credit agencies in the UK, for the last 20. Apart from his PR duties, he teaches credit analysis to risk professionals and helps educate SMEs on the importance of maintaining a good credit rating. Martin is a Fellow of the Institute of Credit Management and is a sitting member of the Institute's Think Tank. He was also honoured by Credit Today, after being included on their Credit 100 list of people who have had the greatest impact in the credit industry during 2008, 2009 and 2010.
|
|
03 Jul 2008
BDO Stoy Hayward's recent research suggests the credit crunch is pushing up the levels of corporate fraud. Of course, as always, internal fraud makes up a large part of the overall picture. Stories reaching my ears in the last few weeks involve sales personnel "upping" their business mileage, and therefore travel expenses, thinking that artificial increases in petrol costs will be disguised by the real increases at the pumps. Others involve simple pilfering of stock from company premises.
One financial controller I spoke to on the subject who lived through the last economic downturn in the early nineties had a good piece of advice. He said that companies should organise employee training sessions on fraud policy. His belief is that this immediately demonstrates to staff that you are being vigilant. Employees, who for the most part are not "thieves" but may be feeling the economic pinch, may be dissuaded from crossing the line. Wise words, as prevention is always better than the cure.
Visitor comments
It is estimated that 80 per cent of work place fraud is committed by company employees, who in desperate times in this recession are resorting to stealing.
Due to salaries and bonuses being slashed, many workers are finding their pay much lower than used to, which is leading them to the temptation to ‘fiddle’ books.
Posted by: business fraud , 20 Jan 2010
Frances Coppola on Sort out the credit sloths
TaxTeddy on EU ding dong over accounts filing Exemption
martin williams on Insolvency stats are head-scratchingly strange
Robert MMoore on Insolvency stats are head-scratchingly strange
slightly optimistic on PIGS Keep Europe in an Economic Trough
Search thousands of financial jobs:
Adding your comment