The Art of Managing Risk and Procurement Integrity: Detect, Prevent and Mitigate Risk.

We recently hosted a Sydney CFO, CPO, and CRO Lunch at Cafe Sydney. It was great to have Leading Financial, Procurement Risk leaders all together with our host SAS and Intel.

Financial integrity is a significant component in business reputation and shareholder confidence. As the complexity of fraud has increased dramatically, traditional governance with checks and balances is no longer enough. Evidence from the association of Certified Fraud examiners (ACFE) indicates that up to 5% of business procurement spend could be at risk with cost reduction flows directly impacting the bottom line.  There are growing security concerns across all industries, with the volumes of transactions increasing, making risk more challenging to identify.  Heightened Risks in potential collusion between Suppliers and Employees that leads to bribery and corruption, as well as procurement-related fraud, waste, and abuse. There’s no surprise why procurement fraud is becoming more important as it is the second economic crime on the planet.

By combining data management and risk scoring on transactions, purchase orders, employee and supplier levels, organisations can improve insights into organisational spending, proactively identify risk, and save hundreds of millions of dollars per year. The automation of continuous audits can contribute to cost reduction and improved cash flow with process efficiencies that detect and prevent rather than recover payments.

SAS and Intel were joined with fellow leaders to discuss the importance of Continuous Audit for procurement integrity to improve efficiencies, save costs, and positively influence the bottom line.

Group discussion points:

  • Value of automation of continuous Audit for procurement integrity
  • Compliance and expense assurance control framework for fraud, waste, and abuse
  • How to shift from payment recoveries to detect, prevent and mitigate procurement fraud, waste, and abuse Risk.

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