CRIME & FRAUD EXPOSURE SCORECARD
Crime & Fraud Exposure Scorecard
Is Your Organization At Risk?
BY: COOKE INSURANCE GROUP
As a leader within your organization, you want to trust your employees and the people you do business with. However, the sad reality is that no organization is immune to the threat of crime and fraud. In fact, the Association of Certified Fraud Examiners estimates that organizations around the world lose approximately 5 percent of their annual revenue to illegal acts. Making matters worse, the average time before an organization discovers that fraud has been committed is eighteen months, long after the damage has been done.
Unfortunately, organizations often overlook the need for crime insurance, with many assuming that they have little to no risk at all. While maintaining strong internal controls should be a priority for any organization, crime insurance provides an important safeguard against the actions of dishonest individuals.
With crime insurance, organizations can protect themselves against financial loss arising out of dishonest and fraudulent acts committed by their employees as well as the actions of non-employees.
To help organizations understand the level of risk they face on a daily basis, Cooke Insurance Group has developed the Crime and Fraud Exposure Scorecard.
SECTION INSTRUCTIONS The following points will be assigned for each response:
YES: 0 POINTS NO: 3 POINTS UNSURE: 3 POINTS
HIRING & EMPLOYMENT PROCEDURES YES NO UNSURE SCORE
1. Does your organization conduct prior employment checks, contact references and verify the educational credentials for all new employees? q q q
2. Does your organization conduct background and credit checks for all new employees? q q q
3. Does your organization periodically conduct background checks on current employees or when employees are promoted or transferred to sensitive positions? q q q
INTERNAL CONTROLS YES NO UNSURE SCORE 4. Does your organization reconcile all bank accounts on at least a monthly basis? q q q
5. Are bank accounts reconciled by someone not authorized to deposit, withdraw funds, write checks, or otherwise transfer funds from those accounts? q q q
6. Are systems designed so that no single employee can control a transaction from beginning to end( e. g. approve a voucher, request and sign a check)? q q q
7. Does your organization require counter-signatures on all checks over a certain amount? |
q |
q |
q |
8. Are all incoming checks stamped“ for deposit only” upon receipt? |
q |
q |
q |
9. Does your organization have procedures in place to approve expenses before issuing reimbursements to employees? q q q
10. Is a physical check and a count of inventory and equipment made on a regular basis? q q q
26 | SPRING 2017