In its 2012 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) found that organizations typically lose five percent of their revenue to fraud each year. Even more frightening is this statistic from that report: the medium loss of survey respondents was $140,000. Over one-fifth of the losses studied exceeded $1 million. Small-to-medium sized businesses are often fraud targets because they lack anti-fraud controls. The smallest organizations in the ACFE study suffered the largest median losses.
Topics: Employee Dishonesty, Human Capital, Limit of Liability, Reputational Risk, Risk Management Blog, Risk Review, Strategic Risk Management, The ALS Group, Total Cost of Risk (TCoR)