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