The misappropriation of company resources for profit is possible in any organization. Stolen money can affect various aspects of an organization – from cash flow to company property, inventory and proprietary information.
Unfortunately, you may not be immediately aware that your company’s financial standing is at risk. Fund transfers and bookkeeping entries may not seem suspicious until it’s too late. However, there are some ways for you to mitigate risk.
Protecting business assets may include implementing these three practices:
Examine an applicant’s history
Previous experiences might indicate the likelihood of an employee conducting criminal activity. Utilize references and background checks to verify you’ve received complete and accurate information.
Increase security protocols
There’s no guarantee that those involved with your business will act with integrity. Thankfully, you can purchase a commercial crime insurance policy to add protection against fraud, forgery and theft.
Divide duties between employees
An internal checks and balances system decreases the odds of misdirected business assets. You could assign one individual to approve payments and another to issue them, for example. This could lessen your employees’ potential abuse of power. The same is true for digital transactions.
The distinct reality is that surrendering control to an employee paves the way for problems. Establishing strategic financial protocols and training will likely play a positive role in protecting a company.
If funds disappear regardless, business owners should understand their options for protecting their interests. You invest a great deal of time and money into risk management, and accountability is a crucial component of success.