Crime is an increasing threat to all organisations. The recent PWC global economic crime survey identified the following trend.
- 34% of companies had experienced economic crime in the last 12 months; a rise of 13%
- 54% of those companies were large, categorised as 1,000 plus employees, but all companies large and small had experienced an increase in economic crime which suggests that all companies are being targeted.
- asset misappropriation accounted for 72% of all frauds
- the average size of a crime loss is 1.3% of annual turnover
The losses incurred are only half the story. Damage to reputation, brand, and business relationships are not uncommon results of crime.
Prevention is, of course, better than cure and a robust system of controls is vital to minimising the risk. However, should the worst happen, a comprehensive Crime Policy can provide essential balance sheet protection and will ‘wrap’ around a conventional insurance programme.
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