Archive for the ‘occupational’ Category

Occupational fraud and abuse is real even though we want to believe otherwise.

Organizations incur costs to produce and then sell on a few or services; these costs run the gamut: labor, taxes, advertising, occupancy, raw materials, research and development-and, yes fraud and abuse. The latter tariff of fraud and abuse, however, is fundamentally different from the first sort: The real tariff of fraud and abuse is hidden, even though it is reflected in the profit and loss figures. The 2006 Report to the Nation on Occupational Fraud and Abuse estimates that U.S organizations lose 5% of these annual revenues to fraud. Placed on the estimated 2006 US GDP (Gdp), this figure would translate to approximately $652 billion in fraud losses. For closely held businesses the median loss suffered by organizations with under 100 employees was $190,000 per scheme.

This is the subject that a lot of business owners and managers would want to believe just isn’t a cost to their business. Unfortunately it is just a real possibility unless an example may be diligent, conscious of the options and also a guardian up against the environment that fosters behaviors much less than desired.