In a recent edition of Small Business Digest it was reported that the typical small business experiences 5% in losses of revenue due to fraud each year. Yes – that referred to a typical company or organization. And when you consider that the average profit margin in the U.S. is only 6.5% you are talking a significant impact to a company’s bottom line. Now ask yourself this question. “Is your company a typical company?
Frauds last a median of 18 months before being detected. The impact of fraud losses in the U.S. range from $300 to $600 Billion. This figure speaks to the difficulty in detecting and proving fraud. Also, recovery of stolen or diverted funds creates its own difficulties.
Small business crime has morphed in sophistication beyond taking advantage of lax audit or accounting controls. Cyber-crimes or breaches can affect anyone at any-time. And the cause is not always a lack of “best practice” controls on your part. Sometimes our business is just “collateral damage” to someone else’s lax controls.
The question is “What can we do?” The answer in a nutshell is we can get informed and lay a foundation for prevention. We can take a hard look at our business – it’s physical layout, employees, hiring practices, and security measures already in place. And we can inform ourselves on the realities of the landscape of our community.
That is why we are so excited to have Kennett Township’s Chief of Police Lydell Nolt share with us the “landscape”of our community and help us lay a realistic foundation for Prevention.
· Employee theft
· Credit Card Fraud
Clearly – not every business is susceptible or has exposure to all of these offenses. But understanding where your community is vulnerable gives us insight into communities, vulnerabilities and the overall strength of our community.
As a realtor wouldn’t you be interested in sharing with your buyers the pro-active steps that your community was taking to keep residents secure?
As a shopkeeper – wouldn’t you be interested in knowing how to secure your premises?
I will leave you with this graphic from CNBC. Information is power and information that is pertinent to you is the ultimate power.
As this table illustrates our areas of exposure are not always what we think. Clearly you don’t have to be a brick and mortar business to have a significant exposure to crime and unnecessary losses.
Get the facts. Register today for Chief Nolt’s Office Hours Kennett presentation.
Crime in the Workplace
Thursday, March 28th 4-5pm
401 Birch Street
Kennett Square, PA 19348