Fraud Prevention and the Applicable Legislation – August/September 2005 (CPE 13)
Although we like to think of fraud as something that happens to other people, it is an unwelcome fact that all organizations (small, medium or large) are potential victims. Fraud is now one of the major causes of business failure.
Running a business in the SMME sector is not just about making money, it is about understanding the environment and as such demonstrating good business practice and sense on a day-to-day basis. SMME business statistics indicate that 70-80% of start-up businesses fail in the first two years of operation and partnerships formed to start-up or buy businesses do not last more than three years.
What is evident about the success of the SMME business and the relevance to fraud is that if one does not understand the basic principles of business, possess thorough business knowledge and the risks associated with it (of which one key risk is fraud risk), one enters a potentially black hole of risky business which will be short-lived and financially draining.
Fraud is compared to death by a thousand cuts; it inflicts pain and does result in a loss of blood (profits), although only a slow trickle is seen, the result is the same, potential business closure.
In majority of businesses it all starts with a plan – a business plan. But it shouldn’t stop there; this business plan should include your Fraud Deterrence Strategic Plan (FDSP), which deals with preventative, detective and investigative strategies.
Within the CPE13 – Fraud Prevention and Applicable Legislation course, the FDSP gets covered in detail, so that the delegate walks away with a ‘toolkit’ on how best to combat fraud within their environment and as such become more ‘fraud-aware’. In fact, the delegates develop their very own SMME FDSP during the course and should be able to implement at least two or three practical steps within the first 24 hours of leaving the course.
Fraud has many faces, and suitably motivated people will invest time studying the way your company operates to commit fraud against it. Be ahead of the fraudster, don’t become a statistic.
“Knowing what to do isn’t enough –
Knowledge must be turned into action”
The CPE 13 course enables you to get to grips with the theory and knowledge, but also enable you to become active in the prevention of fraud, by applying some basic practical steps. Remember, the more prepared and knowledgeable you are with regards to fraud, the quicker your reaction and response will be – and as such potential losses can be prevented or detected timeously.
After all, chance favours the prepared!