Los Angeles and Southern California executives can benefit from financially and operationally applying a three-word phrase used by President Ronald Reagan in the 1980s: “Trust, but verify” your processes and procedures.
A number of problems such as internal fraud and embezzlement can arise when employees are not following policies that are in place.
Reviewed in this week’s article…
…are examples of financial processes and the potential negative impacts when employees circumvent established procedures.
Also discussed are the ways that a CFO services professional can provide independent process testing and verification, services that can both identify areas that are generating risks and act as a deterrent to employees considering fraud or embezzlement.
Along with assessment and risk identification initiatives, a provider of CFO services can recommend new processes and procedures that mitigate risks.
The benefits of focusing on processes and procedures with a “trust, but verify” strategy are numerous: front-end identification of vulnerabilities decreases unexpected and detrimental events in the future; employees will realize you are on top of areas where potential abuse is possible; and enhancements to your guidelines can also improve performance and profitability.