6 Ways to Reduce the Risk of Employee Crime

We recommend that every small business owner consider the following best practices to reduce the risk of employee crime:

 Perform thorough background checks (in accordance with law) of all potential hires; don’t take shortcuts or assume.

Make sure there is clear accountability for every position in the organization and no position has broad enough power to authorize payments without the consent of another individual. Seek to set up a system of checks and balances.

 Set up a tip line for the organization, guaranteeing anonymity, in order to allow for the reporting of any suspicious activity or suspicious business practices.

 Encourage all employees who handle accounting and payment functions to take vacation time, with another person handling their work in their absence.

 Communicate often and clearly about the company’s policy on employee conduct.

 Don’t allow discrepancies to be attributed simply to the cost of doing business. Be sure to conduct a thorough investigation of discrepancies.

 United Western Insurance Brokers provides Risk Management & Insurance Coverage Placement Services for businesses and high net worth families throughout the United States. With its roots dating back to 1918, our  member agencies are privately owned and generate combined sales volume in excess of $300 million dollars, annually.

This reference material is made available to you by Dana Coates, CEO & President of UWIB. Mr. Coates can be reached by email at dcoates@uwib.com. To read Mr. Coates’ bio, clink here. You may visit the company’s website by going to UWIB.com. UWIB License # 02582636 and OD73849

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