#Article

The Top 4 Indicators of Spend Risk


Regardless of the size or the industry of a company, corruption and fraud are constant challenges. Each can cost companies significant sums, both financially and reputationally, damaging public confidence and devastating the bottom line. Corruption and fraud have been shown to lower employee morale as well.

Most importantly, it can put a company under the microscope when it comes to regulatory investigations and unwanted scrutiny from law enforcement.

Effective compliance processes that not only meet but exceed regulatory expectations should be a top priority for any company looking to avoid corruption and fraud issues. However, deciding on how to create, implement, test, and monitor these processes can be challenging, especially when a solid compliance program has not already been put into place.

Mihnea Rotariu discusses the primary four indicators of spend risk—including market-based risk, domain risk, policy and tool risk, and statistical risk—in an article with Ethisphere Magazine. He then dives into the many factors to consider when determining which parts of a company are most prone to these spending risks such as:

  • Geographic Locations
  • Business Entity Types
  • High-Risk Company Segments
  • Unethical Employee Actions
  • Third-Party Behaviors
  • Automatic Approvals
  • Expense Policies
  • Gifts
  • Spend Anomalies
  • Suspicious Patterns and Trends
  • Completeness and Accuracy of Data

By understanding the areas vulnerable to corruption and fraud throughout your company, your compliance program can better position itself to not only stop these acts from happening but prevent them in the first place.

CHAT WITH US

Want to learn how Case IQ can help you achieve compliance with confidence?

Book a time to chat with one of our experts to learn how Case IQ's suite of tools can improve your compliance program from end to end.

Book Your Meeting