As custodians of the company’s monetary assets, CFOs are responsible for safeguarding the enterprise from threats to its financial health, especially those that can result from processes within the finance domain, such as accounts payable and treasury. According to market research, payments fraud is rising. It is therefore critical that CFOs adopt effective strategies to alleviate the potential hit to the bottom line and investor confidence.
The Hackett Group has identified five approaches that can help minimize fraud risk:
1. Comprehensive and enforceable payment policies and rules.
2. Embedded fraud prevention and detection procedures.
3. Automated/digitized payment processes.
4. Consolidated payments workflow.
5. Mandated education for employees about fraud detection and prevention