This website uses cookies to ensure you have the best experience. Learn more

Loss Prevention Policies Essay

1262 words - 6 pages

Loss Prevention Policies
Unit 5 IP
Jessica Payne

Loss Prevention Policies
Each year companies stand to lose at least five percent of revenues to internal fraud. This may seem like a small percentage but it adds up. That five percent can be the difference between staying afloat or filing bankruptcy. When a company spends time and money to prevent fraud it is far less than running the risk of internal fraud.
The most effective way to prevent fraud is to establish a proactive fraud prevention program. It is best if a company seeks the advice from a qualified fraud expert. A successful fraud prevention program requires three elements: education, investigation, and proactive preventative ...view middle of the document...

By implementing these components a company can create a system of checks and balances that help bring errors and fraud to attention. The company should enforce an anti-fraud environment that includes employees because it is important for them to understand that anti-fraud is for their protection as well (Coenen, 2011).
Implementing a fraud prevention program is a daunting task but it is worth the efforts. A well constructed anti-fraud program should be monitored and updated as the business changes and develops (Coenen, 2011). If a company is committed to their program they will save money because they have reduced the opportunity of fraud. Also fraud prevention programs can highlight opportunities that may allow fraud to take place. The company is then able to take action to eliminate those opportunities. Overall, fraud prevention is just good business.
Detective controls are designed to detect errors or anomalies that may have occurred. One of the most important and effective detective controls is implementing monthly reviews of reconciliations and concurrent reviews of detailed transactions (Virginia Tech, 2011). Reviews of reconciliations are a tool that supports the detective controls. Reviews are the preliminary process in the system of checks and balances in order to prevent fraud, theft, or inappropriate use if funds. Monthly reviews also give a company insight to the effectiveness and efficiency of business practices.
Management is responsible for ensuring that reviews are adequate and provide assurance that any irregularities are detected in a timely manner. A review can be the final check on the appropriateness of expenditures (Virginia Tech, 2011). A review of detailed transactions can provide the company a blueprint of revenues and expenses. The blueprint can specify opportunities to restructure the business processes.
In order for a fraud prevention program to be effective a system of checks and balances must be applied to accounting and administrative controls (SSF, 2011). Accounting controls needs to supply assurance that employees are performing transactions that align with management direction and authorization levels. Posting records daily will ensure that activities conducted each day are kept separate. This allows errors to be located and corrected easily. Every month subsidiary records should be balanced and a review of the reconciliations should be completed. Internal reports are necessary to review key areas of the business operations. Checks, cash receipt vouchers, and journal vouchers should be kept in sequential order (SSF, 2011). This assists in reconciling and controlling used and unused items. The business must also provide an audit trail through documentation. This allows each transaction to be tracked. Any documentation should include the employees name, the transaction date, and the amount.
Administrative controls are the responsibility of management. Administrative controls create the lines of authority...

Other Papers Like Loss Prevention Policies

Dlp Dlp Dlp Essay

8522 words - 35 pages © SANS Institute 2008, 6 As part of the Information Security Reading Room Author retains full rights. . 08 , Au tho rr eta ins ful l rig hts Data Loss Prevention Figure 1. te 20 Key fingerprint = AF19 FA27 2F94 998D FDB5 DE3D F8B5 06E4 A169 4E46 Ins titu It is clear from the numbers above, that data loss is largely contributed by employees. This is due to lax security policies on

Standard Chartered Ethics Essay

905 words - 4 pages )  Overseeing of the group’s development of public commitments regarding activities to encourage, for “good brand promise”. Group acts in various positions, mainly: Money-laundering prevention, Community investment and HIV and AIDS policies The Group Risk Committee (GRC) informs the BVC on matters relating to reputational risk  Employees are themselves responsible for day-to-day identification and management of reputational risk  Quarterly

Unit Ic01, Infection Prevention and Control

2613 words - 11 pages , faeces, vomit-down sluice Soiled linen-Red bags 1.2 Explain employers’ responsibilities in relation to the prevention and control of infection It is the responsibility of the employer to provide employees with information on such policies, as well as ensure all employees receive sufficient training where necessary. Also provide PPE to all members of staff. 2 Understand legislation and policies relating to prevention and control of

Retail Loss Prevention: Doing More with Analytics

2563 words - 11 pages Common Loss Prevention Programs Retailers use a variety of LP programs to combat shrink. These programs include screening employees before hiring, LP awareness programs, code of conduct training, asset control policies, standard operating procedures and several system implementations. The framework in Figure 4 outlines the overall objectives of loss prevention teams and how analytics fits in. The LP programs are implemented to meet three main

Crime Reduction and Prevention Proposal

2474 words - 10 pages Preventing Crime Crime Prevention and safety is always an issue when it comes to a community. It’s something that individual learn from observing others, reading, and learning from mistakes of others are some of the reasons we post and talk about near misses and direct hits that each of use have encountered (Safety Toolbox Talks, n.d). There are several ways to plan for crime prevention, but the best way is by the community being the eyes

Desktop Technician

1578 words - 7 pages (DLP) solution prevents loss of critical business information and intentional or unintentional breach of corporate data sharing policies. Check Points' network-based DLP combines technology and process with easy deployment for immediate data loss prevention. | Starting at $3,000 per year | Product | Purchase price | Life expectancy | Annual maintenance | HP ProLiant ML350 G6 Special Server - Xeon E5620 2.4 GHz | $1,579.00 | 4 years

It456 Db2

744 words - 3 pages vulnerabilities are more easily. Attacks are carried out on these compromised infrastructures including industrial espionage, revenge, financial gain, and terrorism. ISSA.com/security Some of the principles used in the design of a secure Infrastructure are compartmentalization of information, principle of least privilege, weakest link, defense in depth, authentication password security, antivirus, packet filtering,, firewalls, policies both

Disaster Management

597 words - 3 pages in mounting a humanitarian response to disasters. Each will have a prepared disaster MANAGEMENT plan. These plans cover prevention, preparedness, relief and recovery. Disaster prevention These are activities designed to provide permanent protection from disasters. Not all disasters, particularly natural disasters, can be prevented, but the RISK of loss of life and injury can be mitigated with good evacuation plans, environmental planning and

Global Security Policy - Week 5 - Cmgt-400

969 words - 4 pages business requirements. Until an organization understands what a cloud encompasses, in its entirety, determining the best approach is an effort in futility (Lord, 2014)”. Cloud computing is used with local and global organizations. It's flexible, accessible, and has a low cost for high capacity storage compared to traditional storage and data sharing methods. Data loss prevention is a major vulnerability and security risk in cloud computing

At-Risk Youth

789 words - 4 pages evidence on the effectiveness of dropout prevention initiatives and synthesizing the lessons from these studies for policymakers and educators. Re-Engaging Out-of-School Youth Youth who drop out of high school represent a loss of human potential. For the Office of Vocational and Adult Education within the U.S. Department of Education, Mathematica conducted case studies of six dropout recovery programs that help youth ages 16 to 21 return to school

Hospital and Healthcare Security

1854 words - 8 pages section will detail these vulnerabilities and risks of these healthcare facilities. Hospitals and healthcare facilities must have a 24/7 security system that covers all the facilities even if they close at night. There is some vulnerability that not is related directly with the security personnel, which must be managed by a healthcare provider and possibly, receive assisted by the security personnel. According to the Handbook of Loss Prevention

Related Essays

The Threat Of Fraud Essay

1630 words - 7 pages prevention, the company should provide staff training, staff policies that need to be strictly enforced, data loss prevention, data encryption and a business security plan in the event that the company’s information and financial data has been compromised ("Get safe online," 2012). As a result, this will not only make employees aware of fraud risks, it can provide the tools need to evaluate, design and implement procedures that will proactively

Week 3 Paper

577 words - 3 pages -smoker (Bunn, 2006). In 2007 studies show a loss of productivity due to deaths from smoking averaged 92 billion dollars due to the company (Spinney, 2007). Study purpose The purpose for our study is to show others how smoking effects production in a company filled with smokers and non-smokers. Employees are aware of health issues smoking can cause to them. The smokers have the right to smoke but, have to maintain company’s policies for allotted

Management Essay

302 words - 2 pages ASSESSMENT BSBRSK501B MANAGE RISK Assessment tool 1 Assessment activity 1: Review organisational processes, procedures and requirements for undertaking risk management 1. Create your own definitions for the following terms: a) Risk: A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action. b) Risk

Review Of Literature

1286 words - 6 pages Organization's (WHO) 2005 Bangkok Charter as "the process of enabling people to increase control over their health and its determinants, and thereby improve their health." (WHO) 2005 Bangkok. What that mean is we need to adapt new policies to address the issues and reasons behind our inability to start and maintain a healthier life style and change the existing life style that we have currently. With that being addressed we have to address the