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Ayla Sauer | Solutions Consultant Senior – SAP Concur
Jameson Hughes | Solutions Consultant Senior – SAP Concur
Fending off Fraud and Keeping ComplianceHow to Better Detect, Manage and Prevent Risks at Your Organization
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Ayla Sauer Solutions Consultant Senior – SAP Concur
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
- Setting the Stage on Compliance & Fraud
- The Cost of Non-Compliance
- How Technology Can Help Mitigate Risks
- Q&A
Agenda
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Setting the Stage on Compliance and Fraud
Employee-initiated spend
Many channels for potential
fraud
Audits (internal and external)
Rules and regulations:
• Sarbanes-Oxley
• The Sunshine Act
• The Department of Commerce
and Consumer Affairs
• Securities industry
• Union regulations
• FCPA
• Dodd-Frank
• Bribery Act
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Why is fraud in the spotlight
Big data. Better data.
More checks and
balances.
Increase in regulations
and compliance.
Risk to reputation.
Fraud is an enterprise risk!
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Top 4 Expense Categories
Total revenue lost to fraud
5%
16% Individual meals
8% Car rental
22% Hotel
34% Airfare
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Common Travel Fraud Schemes
✓Profitable per-diems
✓Mileage padding
✓Fake expenses
✓Unused airline tickets
✓ Last-minute flight bookings
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Has Your Company Found Any Of These Expenses Submitted?
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Double-dipping Schemes across different
financial systems
Pattern identification
Common Expense Fraud Schemes
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How to Stop Fraud Before it Starts
Mistakes Happen1. Mitigating Errors2.
10% of travelers have at least one duplicate
expense. Catching duplicates enables you to
highlight actual incidences of fraud.
Mandating a corporate card program makes it
possible to prevent and/or flag out-of-policy
spend before the money goes out the door.
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How to Stop Fraud Before it Starts (continued)
Focus on Communication3. Put the Plan in Action4.
Adopt a zero-tolerance fraud policy and let
employees know that all expense
reimbursement claims are open to audits.
Set up proper audit rules, use effective spend
reports that identify trends and outliers, and
revisit policies and procedures to manage risk.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Jameson HughesSolutions Consultant Senior – SAP Concur
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
The Cost of Non-Compliance
by a global telecom
37%
$2,448
$965m
$800m
$795m
of business travelers had at least one exception on their T&E reports
average reimbursement amount requested by employees who submit fraudulent claims
Top penalties for Foreign Corrupt Practices Act (FCPA) violations include:
by a multinational technology company
by a European telco
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Proactively Preventing Compliance Risk
Understand your business network.1.
Implement the appropriate controls.2.
Maintain clear and correct records.3.
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Proactively Preventing Compliance Risk (continued)
Implement a comprehensive audit process.4.
• Audit receipt types and itemizations
• Audit cash expenses
• Conduct random checks
• Identify location and type of expense and where
• Verify employment and look for behavior patterns
• Use a third-party auditor to maintain credibility
Education around clear policies.5.
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Key Considerations for Building a Scalable Audit Process
When You Should Audit Best Practice Recommendation
• Before manager approval
• After manager approval
• After payment
• Before expense reports are
approved
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Building a Scalable Audit Process (continued)
What You Should Audit Best Practice Recommendation
• Randomly selected claims
• One global T&E policy
• Specific expense types and
duplicates
• Audit 100% now, and then get
selective
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Building a Scalable Audit Process (continued)
Why You Should Audit Best Practice Recommendation
• Drive policy compliance
• Control costs
• Identify bad behaviors
• Reduce your risk
• Pinpoint problem areas through
auditing, and maintain an end-to-
end process that keeps you in
control and your organization
protected
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
How Technology Can Help Mitigate Risks
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Technology for Risk Prevention
1. Visibility and control
2. Policies and workflows
3. Speed and simplicity
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Technology for Risk Prevention (continued)
1. Ease of use
2. Visibility into all travel bookings
3. Independent audit
4. Flexible reporting
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SAP Concur is Your Partner for Compliance and Fraud Prevention
Audit Service Concur Detect
• Certify each expense against your
policy
• Identify non-compliance expenses prior
to reimbursement
• Ensure all employees are compliant
using independent auditors
• Consult on best practices
• Reduce expense report errors by up to
66%
• Capture 10 times the amount of errors
and fraud before reimbursement
• Shorten auditing time by as much as
90%
• Audit 100% of expense reports
© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Combating Fraud and Non-Compliance is Not a One-Size-Fits-All Approach
Questions?
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