Management of specific corporations may well encounter incidents of stocks losses thanks to misappropriation of assets by its personnel, i.e. their personnel stole the company’s stocks for private advantage (i.e. private usage/ private income soon after promoting it out).
Let's go over with each other on What Might go Wrongs (“WCGW”) inside the internal manage technique that may well lead to the business exposure for the threat of fraud:
- ineffective process in changing inwards/outwards of stocks into stocks track record
- physical stocks are certainly not kept in security location
- CCTVs not placed in warehouse
- stock take will not be performed frequently (i.e. stock take on a half-yearly basis)
- volumes and motion of provision stocks / obsolete stocks are certainly not kept tracked (note: these stocks commonly carry scrap value, and could be misappropriated if there’s no right record)
The list above will not be inclusive and it can be for personal reference only
From managing point of view, there are some regions / procedures will need to become carried out after they had seasoned / encountered fraud regarding their physical stocks:
- install CCTV inside the warehouse and execute random examine on specific time slots
- safety guard to execute examine on employee’s bags ahead of enabling the personnel to leave the premises
- strengthen accountability with the personnel by assigning unique location of stocks of unique personnel
- impose penalty on all warehouse personnel though there’s material stock differences ( e.g. penalty on warehouse personnel if stock-take distinction is better than 0.5% of total stocks)
- employ strict safety access for the warehouse
- assure that stock-take is performed frequently and any stock-take distinction is investigated
See Also:
- ineffective process in changing inwards/outwards of stocks into stocks track record
- physical stocks are certainly not kept in security location
- CCTVs not placed in warehouse
- stock take will not be performed frequently (i.e. stock take on a half-yearly basis)
- volumes and motion of provision stocks / obsolete stocks are certainly not kept tracked (note: these stocks commonly carry scrap value, and could be misappropriated if there’s no right record)
The list above will not be inclusive and it can be for personal reference only
From managing point of view, there are some regions / procedures will need to become carried out after they had seasoned / encountered fraud regarding their physical stocks:
- install CCTV inside the warehouse and execute random examine on specific time slots
- safety guard to execute examine on employee’s bags ahead of enabling the personnel to leave the premises
- strengthen accountability with the personnel by assigning unique location of stocks of unique personnel
- impose penalty on all warehouse personnel though there’s material stock differences ( e.g. penalty on warehouse personnel if stock-take distinction is better than 0.5% of total stocks)
- employ strict safety access for the warehouse
- assure that stock-take is performed frequently and any stock-take distinction is investigated
See Also:
