Fraud Prevention Plan Introduction ‘Most organizations tolerate zero rate of fraud and corruption. In addition to this, all cases of fraud will be applied using all the available information and making use of existing law and controls. The controls mentioned here include checking and assessing the finaces and controls that are prescribed in the systems, policies and procedures of the given organization. The implementation of the instructions that are defined in policies that has been formulated in the organisaiton and is seen to be followed by all people and staff in that organization.
It is a requirement that in cases where an employee suspects that a manager is involed in a fraud, then the report of the report can be made to other member of the management. Background Fraud has been reported in many firms calling for action to be taken to curb this menace. The existence of fraud has cut across all industries. From a number of researches that was carried out in commercial hotels, it indicated that nearly 67 per cent of the total fraud cases committed are from insiders mainly the line managers who contribute to about 83 per cent of the total fraud reported to take place within the premise.
The other remaining was place under the outsiders. Fraud related crimes have shown to the researchers that if this unethical behavior is not prevented then it will result to loss of funds. Studies that were done between 2005 and 2010 revealed that up to $10,000 are lost every day as a result of fraud. This is therefore calling that measures be taken to minimize this crime. Suppliers contribute 43 per cent of total, outsiders being 22 percent and 35 per cent from insiders.
The research further explained that a larger proportion of fraud occurs either between the staff and a client or supplier and a line manager or job seeker and a manager. All the cases are committed with an aim of favor of something than other colleagues. ThreatsAny crime committed has a negative impact to the progress of a business. The costs that are lost as a result of fraud cases are too much in that if it is not prevented earlier then it will soon call for a closure.
Fraud that are brought about by the outsiders with the aim of being favor in employment will pose a threat of employing people without the right skills which will at the end lead to poor management thus more loss of funds and clients through other ways. There is a threat that if suppliers engage in fraud with commercial hotels supplies will obvious reduces at high cost at with very low quality, customers who are looking for a satisfactorily services in a commercial hotel will never ever visit such fraud affected firms because they are after quality services.
Threat mitigationFraud can be mitigated through compartmentalization whereby staffs are isolated from the rest of the people at the time of work. It is believed that frauds are done when the staffs are given freedom to interact with suppliers, outsiders and clients. Rules should be formulated that will limit them from walking out of work at some specific times of their work. During working time both parties should not be allowed to meet as they may engage in fraud crimes that will have a negative impact to the organization’s productivity.