3 Factors That Put Your Company at Risk of Internal Theft
As a business owner or manager, you probably worry about external threats like shoplifting or cyberattacks. But did you know that internal theft may also cause significant losses? In fact, according to Corporate Finance Institute, 38% of inventory shrink can be attributed to shoplifting, with 34.5% being caused by employee theft. Here are three factors that make your business prone to internal theft. 1. Poor Internal Controls The first big risk factor is poor internal controls. This means your business lacks procedures to prevent theft. For example, you may not require purchase orders or have a clear process for approving invoices. It's also possible that inventory isn't tracked properly, so shrinkage goes unnoticed. Without oversight, it's easy for employees to steal. Fix this issue by implementing tighter financial controls. Make sure purchasing and payments follow a defined workflow. Regularly audit inventory numbers. The more checks and balances you have, the harder it...