Monday, March 11, 2013

Risk Management

Why take risks with your business?

Fraud, theft, embezzlement, and other losses constantly threaten your business! What do you do about it?  Watch your business and you watch your money! $$$

Facts about risk losses to businesses

The SAS Institute concluded that 90% of all companies in the financial sector have lost more than $10 million yearly due to poor risk management. Gary Cohn, President of Goldman Sachs, noted, “Poor risk management, and not sophisticated products, is to blame for financial-company losses and failures” (Bloomberg Business Week, September 25, 2011).

Forensic accountant Tracy Coenen writes that 91% of fraud schemes occur by asset misappropriation. However, its costs dwarfed financial statement reporting fraud, which cost companies as much as $2 million.

A Sacramento, California construction company suffered a financial loss in 2011 when an accounting manager embezzled nearly half-million dollars. Other risky events can bring businesses to their knees financially. The emergence of newer risks to a company’s existence causes risk management to leap in attention among business executives and owners.

The chart below from ACFE 2010 Report to the Nations on Occupational Fraud and Abuse
the shows the risks vulnerabilities for small businesses:


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