Top 5 Purchase-to-Pay Risks You Need To Know In 2024 And How To Mitigate Them - Tuesday 9th July- 2:00 PM (GMT) l 9:00 AM (ET)

6 ways to mitigate financial risks during summer to keep your business safe

In summer, businesses face unique challenges that can increase the risk of fraudulent activities. Factors such as reduced headcount, evolving legislative landscapes, the holiday mindset, and organisational changes create an environment where fraudsters thrive.
Life ring on a purple background, symbolising mitigating financial risk in summaer

In this blog we share practical recommendations to help you reduce the risk of fraud and error during the summer months, and so mitigate financial risks:

1. Establish Cover and Communication Protocols

During the summer season, teams often experience reduced staffing levels. This can impact approval processes and communication channels, increasing the risk of control failures and fraudulent activities going unnoticed.

With reduced staff availability, ensure that adequate cover is in place and agreed on. Ensure your team are fully aware of your escalation procedures. You can also establish effective communication channels for urgent matters that may arise when key personnel are out of the office.

By establishing these protocols in advance, you can maintain smooth operations and minimise the risk of delays or mishandled situations.

2. Beware of the Holiday Mindset and Hasty Decision-Making

As the holiday season approaches, individuals may become more focused on completing tasks quickly. This sense of urgency and pressure can inadvertently lead to oversights and reduced scrutiny, providing an ideal opportunity for fraudsters.

Remind your staff of the importance of maintaining their usual levels of thoroughness, even during this busy period. Encourage them to take the necessary time to perform their duties accurately, adhere to established processes and prioritise compliance.

By maintaining diligent practices, you can minimise the risk of fraud. FISCAL Technologies’ software provides advanced fraud and error detection capabilities. We help you proactively identify and prevent potential issues within your payment process before the payment run.

3. Heighten Checks and Exercise Caution

Recent events such as evolving legislation, extra sanctions and financial instability contribute to an atmosphere of uncertainty and heightened risk. Fraudsters are quick to exploit these circumstances, seeking opportunities to defraud businesses.

To counteract this, it’s crucial to increase checks and exercise caution in all financial transactions. Stay informed about changes in regulations or use continuous monitoring software. Communicate updates to your team and encourage them to remain alert and well-informed.

4. Manage Change and Uncertainty

Organisational changes, system migrations, mergers, or shifts in senior leadership can introduce unfamiliarity and disrupt established routines. This makes businesses more vulnerable to fraudulent activities. Fraudsters prey on people’s tendencies to normalise the unknown, capitalising on these situations.

To ease this risk, effective communication, clear guidelines, and reinforced security measures are crucial. Educate your team about potential risks and the importance of adhering to security protocols.

5. Take Precaution with Your Payment Detail Processes

Fraudsters also exploit reduced staffing levels and a more relaxed atmosphere during summer.

Avoid accepting new payment details or making bank account changes in the days leading up to the holidays where possible.

By implementing this precautionary measure, you mitgate financial risk, like falling victim to unauthorised changes or fraudulent requests.

6. Automate Risk Management for a Thorough Overview

One final practical protective measure is to deploy a risk analysis platform. FISCAL’s platform helps reduce fraud risk, highlight errors and can automate regular tasks such as statement reconciliation. This can safeguard your business, providing peace of mind that fraudulent activities and errors aren’t slipping through the cracks.

By being aware of the specific risks that arise during the summer months and implementing the recommended measures, you can strengthen your business’s defences against fraud.

Read more about our fraud detection capabilities here.

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