Resilience: How to Prevent Fraud and Access Audit Deficiencies in a Risk-prone Era
With risks continuing to rise in an ever-pressing risk-prone era, what should companies be doing now to prevent fraud and audit deficiencies? In our latest webinar, KMPG experts Vincent Calabrese, managing director of risk advisory solutions, and Nick Wozny, managing director of ERP risk consulting, joined ERP Maestro’s founder Jody Paterson to answer this very question and share their insights on what companies should be doing to protect themselves now and in the future.
You may be asking yourself: Why should companies be more concerned now about fraud protection? According to the Ponemon Institute 2020 Cost of Insider Threat report, the frequency of insider incidents, such as internal fraud, data breaches and mishaps, has tripled since 2016 (so too has the cost). The Association of Certified Fraud Examiners’ (ACFE) 2020 Report to the Nations reported that the typical fraud case lasts 14 months before it is detected and the average cost per case is $1.5 million. In addition, companies see indirect costs associated with these incidents that though intangible add up. Damaged reputation, hesitant investors and lost customer trust are costly and add to the 5% of annual revenue a typical company loses to fraud.
As more employees work from home, it lessens the ability to monitor employee actions without the right tools in place, opening the door to opportunity. Once motive and opportunity intersect, the only thing left is access to the right information to perform a fraudulent act. A Ponemon report found that 75% of employees say they have access to data they shouldn’t. Despite this, too many companies continue to manage Segregation of Duties (SoD), access provisioning/deprovisioning, access reviews and risk monitoring in SAP manually. Manual processes are error-prone, time-consuming and lead to increased risk.
So, what can you do? Vincent stated, “Organizations now are being tasked to do more with less. As it relates to COVID, if compliance or audit professionals decline, it’s difficult to effectively monitor your control environment.”
If you missed the webinar, tune in at your convenience to get more information on the current internal risk landscape and what Vincent and his co-presenters suggest on how to manage access and create accuracy of financial statements in an increasingly risk-prone era.
Watch the webinar on-demand: https://erpm.wistia.com/medias/471x4yz9zj