In recent years with the adoption of more digital platforms to aid the procurement process, we hear from many procurement professionals about the lack of visibility throughout the process.
⤷ Collusion, Cartel and Kickbacks are common in procurement.
20% of all spending by organisations is unmanned and often un-contracted, and so at risk of procurement fraud, the second most frequently reported economic crime.
The financial impact of Fraud
Further to this, the ACFE have recently reported, as part of their regular Report to Nations on Occupational Fraud and Abuse (2018), that the median loss from fraud they have studied was $130,000 💵
Many estimates pointing out that fraud costs organisations 5% of revenue each year (median estimate).
Your best asset ? Your people 🙂
50% of corruption cases were detected by a tip. 2018 ACFE
Internal audits and managerial reviews were the next most effective methods, which used to successfully detect fraud in 16.5% and 13.4% of cases respectively.
🔍 Other lesser successful detection methods include:
- IT controls,
- Account reconciliation,
- External audits,
- Document examination, and
- Police notification.
Whistleblowers need to be protected and championed by organisations if we are to see an increased likelihood of them coming forward. These people are being guided by their ethics to report crimes against the entire organisation.
Whispli gives you visibility in procurement
✔️ Whispli provides procurement managers with a secure method of receiving information anonymously from their team about potential wrongdoing.
✔️ This method allows the whistleblower to come forward in a safe manner without having to identify themselves.
✔️ The procurement manager, or registered 3rd party, can run an investigation through a secure case management system with full transparency of procedure.