COVID-19 has created previously unthinkable consequences for businesses and society in our lifetime. Organized crime has been quick to respond, mounting large scale orchestrated campaigns to defraud businesses, preying on fear and anxiety related to the pandemic.
While businesses are severely disrupted and in many cases their very continuity hangs in the balance, those that are able to contain cash have shifted up gears to maintain operational resilience. During this time companies that scrambled to mobilize their critical home working arrangements need to ask a fundamental question - who is keeping an eye on the inherent fraud risks associated with supply chain disruption? Is this the unforeseen pandemic which could cripple your organization?
Board and senior leadership attention is rightly diverted to address immediate priorities such as liquidity and capital management in the current environment. This provides fraudsters with a head-start to exploit any new or enhanced vulnerabilities in your supply chain. Business resilience lessons have demonstrated that supply chains need to be agile in order to remain effective in the current climate, but they also need to continue to effectively manage risk.
This blog, the first in a series, examines reasons why your supply chain is so highly vulnerable to fraud in light of the COVID-19 pandemic. It’s imperative for you to understand how to navigate through these unprecedented challenges and make informed decisions now in order to avoid significant financial impact in the future.