Fraud is a growing concern for all businesses with many affected each year, whether they care to admit to it or not is another matter. The key to reducing the chance and therefore the impact on your organisation in terms of lost money and potentially getting a bad reputation is to have an effective internal control system.
There are five anti-fraud points that companies should implement starting with having a strong anti-scam stance, which should be felt across the whole organisation.
An Empowered Audit Committee
An audit committee is a necessity in a large organisation, especially if stakeholders aren’t part of management (both private and publicly traded). The committee needs to be aware first of all of the fraud risks that are present to the company as well as other potential risks of scams that may crop up in the future. The audit committee should work with management to understand the monitoring systems and how they are looking to mitigate those risks. A good committee must ensure they remain sceptical and investigate everything no matter how small.
Regular and Detailed Fraud Risk Assessments
Regular is really key, the threat will be significantly reduced if employees know that accounts and systems will be regularly assessed and will catch any outside fraud as soon as possible and hopefully before the scam does too much damage. An effective fraud assessment should cover different fraud scheme scenarios that could be carried out, the people in the organisation that could carry out such schemes and the impact it would have on the organisation.
Educating Employees – Anti-Fraud policy
It isn’t uncommon for employees to abuse the company’s reimbursement policy or use the resources for their own gain which can go undetected and not seen as fraud however misuse of company assets is a waste of time and resources, costing the company. Fraud, in most instances starts out small so nipping this in the bud will eliminate many of the organisations problems. A fraudster will start with taking advantage of expenses then likely gain confidence and will start with other scams.
Organisations should implement a no tolerance policy in order to send the message to all employees that any type of fraud or misconduct will be severely dealt with.
Responding to Fraud claims
No matter the size of the organisation, every fraud allegation should be investigated as the potential effect on the organisation could be huge. A policy should be implemented, a hard print that the organisation will follow for collecting evidence, the responsibilities that each department and managers have and who will be informed depending on the severity of the allegation.
Effective Reporting System
Firms should all have a hotline to report scams they have encountered or suspect. Using a hotline is one the easiest for both employees and the business to operate and is also the least expensive way for reporting potential scams.
Regular review of the hotline should be conducted to ensure it is as efficient as possible either by management or a third party. The hotline shouldn’t be limited to employees. To cover any potential fraud the number should be external to cover customers and suppliers too and if the business is global it should operate 24/7. As part of employee training, the types of activities employees should watch out for and report should be included.
For more in depth of anti-fraud schemes and scam prevention then I’d suggested attending a dedicated conference such as the Marcus evans scam conferences.
Posts Tagged ‘Plan’
The Five Anti-Fraud Strategy Plan
July 4th, 2011Consult Online Insurance Providers on How to Get Health Plan Policies That Suit Your Need Best.
February 14th, 2011The purpose of our life, as per many philosophers, is simply to be happy and hassle free. However, this becomes a problem if fate decides to spin the wheel of chance and grants us with an emergency situation like a medical sickness or even an accident. When stuck in such a situation, it is difficult to do justice to our wishes, dreams and aspirations. Still, the purpose is so deeply ingrained in us that it keeps finding ways to counter everything that luck or chance decides to throw our way. In the case of a medical emergency, the only device that you have at your disposal to depend upon is a medical health insurance policy. The health insurance coverage of a policy is designed in such a way that it counters the worst that life can throw at you by not only providing timely and appropriate remedial measures for the sickness or injury but also protecting you from its long term financial implications. The following is how medical insurance achieves this.
1. There are situations in life, where you may not have enough liquid cash or even savings to deal with the sudden onset of some kind of a medical emergency. This is where you need to get health insurance quote that will come in use. Health insurance covers you against the worst that a sickness or injury can throw at you by ensuring that you get appropriate medical attention in a timely manner. This means that, regardless of your financial capability at that particular point in time, if you have an active medical insurance policy then you would get medical treatment.
2. The second manner in which a medical emergency occurring without medical health insurance can cause a lot of problems is by forcefully depleting your life’s savings at one go. This happens when the health situation is serious and you cannot do without medical attention. The loss of your life’s savings can even result in further mental trauma which, as per many experts, can also cause other health problems. Health insurance coverage would prevent you from being trapped in this vicious circle.
3. Apart from everything that health insurance covers, you will also find that, in the long run, you are actually benefitting financially by having medical insurance in your and your loved ones’ names. This financial benefit from health insurance coverage comes from the tax benefits that the government of India grants its citizens. Keeping in mind how important it is to own a health insurance policy, you may further relive yourself with the fact of not having to go through the traditional hassles of acquiring insurance. The advent of internet has made it possible for you to get a policy ranging from health policy India to health policy USA in a matter of a few minutes. It not only gives you tips on how to get health plan policies but actually gets one for you at the comfort of your own home.
What Will Health Insurance Plan Reform Do For You Right Now?
February 5th, 2011Many of the effects of healthcare reform legislation pending in Congress will not be evident for several years. For example, the health insurance plan exchange market and accompanying subsidies for low- and moderate-income individuals are not set to be complete until 2014. Yet, the American public is being asked to begin paying for it today, through various taxes and mandates. Supporters believe that it is a worthwhile investment that will reduce the uninsured population and lead to lower health insurance premiums in the long run, but it is a hard pill to swallow.
However, some provisions will have a more immediate impact. More stringent regulations on insurance companies will take effect as soon as President Obama signs a bill into law. The individual health insurance plan market will become more friendly to consumers as a result. These regulations include a ban on lifetime or annual limits on coverage, bringing peace of mind to those who are unknowingly underinsured: many medical bankruptcies are caused by expensive treatments for cancer or other serious diseases. A lifetime limit of $1 million initially seems generous, but a several-months-long hospital stay and a few rounds of chemotherapy and radiation may soar past that mark. The government will start enforcing this ban six months after the healthcare reform bill passes.
Meanwhile, those with pre-existing conditions are also in luck. Currently, finding a health insurance plan that will cover someone with any chronic diagnosis–even if the condition is manageable with regular medications–is difficult or impossible, unless they have access to insurance through their employer or a family member. Regardless of whether the legislation ends up looking more like the House of Representatives’ version or that of the Senate, finding a suitable plan will be easier. For young adults out of college, many of whom have incomes too low to afford an individual health insurance plan and/or lack full-time employment with insurance benefits, the fact that they will be able to continue their coverage under a parent’s plan for a longer period of time is also reassuring. Depending on which version makes the final cut, they can stay on those plans until they are either 26 or 27 years old.
Another immediately effective limitation on the health insurance industry is related to administrative costs. CEO salaries, shareholder profits, and bloated corporate infrastructure are largely blamed for the increasing cost of a health insurance plan. A provision in the healthcare reform bill would require that insurers spend 80-85% of the premiums they collect on medical care, as opposed to other expenses. It is hoped that such a regulation will either lower health insurance plan premiums or increase the quality of care in the individual health insurance market. Skeptics claim that it will force some insurance companies out of the market, and leave many in the lurch before the regulated exchange markets are up and running.
The uninsured have received a lot of attention in the debate over healthcare reform. While the bulk of the programs meant to provide them with a health insurance plan will take time to set up, both chambers of Congress have taken steps to ensure that they are cared for in the meantime. The House has proposed the creation of a temporary insurance program for those unable to acquire coverage, much like the high-risk insurance pools in many states. Meanwhile, the Senate has allocated $5 billion for another temporary program for the uninsured with pre-existing conditions. Although the former would take effect immediately, the latter would only become effective 90 days after the bill is passed. It is very likely that some form of assistance will survive the final negotiations.
CIGNA CEO Talks Health Insurance Plan Costs
January 14th, 2011Health insurance companies are significant stakeholders in healthcare reform. CIGNA is one of the industry’s giants. With Democratic-led healthcare reform looking ever closer to reality, they have picked a new CEO to guide them through the changes. David M. Cordani is understandably concerned on the impact greater regulation will have on his business. However, he has several effective prescriptions that, if added to current legislation, could improve health while decreasing health insurance plan costs.
Like many health insurance plan providers, Cordani believes that neither the Senate nor the House of Representatives’ version of the bill does enough to target the causes of soaring medical expenses. Admittedly, administrative costs and profit margins do not help the situation. As the new chief executive, he will be earning a total salary up to $9 million each year. Taxing health insurance companies and imposing limits on them, as the combined bill will do, could inspire companies to cut back on salaries to trim the fat.
Cordani does not think that doing so will be very effective in increasing the quality standard of care while reducing costs. Instead, he would like to see greater focus on preventative care that will improve health. Specifically, about one-third of Americans are overweight or obese. The obesity epidemic facing our nation raises the cost of an average health insurance plan, because it must pay out claims for medical care related to it. Coronary and musculo-skeletal diseases, as well as diabetes and some cancers, are chronic conditions that can be caused or exacerbated by being obese. The cost may be unsustainable, according to Cordani, if insurers are limited in what they can charge and unable to deny coverage.
Other developed nations, most of which have a public health insurance plan for all, have lower rates of obesity and therefore more ability to provide medicine without risking bankruptcy or further budget deficits; although foreign governments have their own rampant cost drivers, such as the United Kingdom and its cost burden of high death and disease rates associated with alcohol abuse.
Being on the board of America’s Health Insurance Plans means that Cordani is continuing his lobbying efforts against healthcare reform as it currently stands. There is probably a degree of self-interest involved in his relief that the public option was dropped by the Senate and will most likely stay out of the final bill that makes it to President Obama’s desk. He is not against healthcare reform entirely, although his opinions are more in tune with centrist Democrats and independents; Cordani has praised Joe Lieberman at length. In addition, he acknowledged the efforts of Mark Warner and other Democrats to minimize costs.
Many liberal Democrats have criticized Warner and other senators for watering down the bill and lessening its reach. Cordani would disagree, since he believes that the expense of expanding health insurance access to millions of uninsured Americans will be passed on in some way. Even if it does not appear directly in the federal budget, the cost increase may appear in the premiums of those with a private health insurance plan.