The SME Business Guide to Fraud Risk Management

All organisations are affected by fraud, but disproportionately so for SMEs given their size and vulnerability. Some small businesses that have failed to manage business fraud effectively have not only suffered financially but also have not survived. This book provides a guide for SMEs to understand the current sources of business fraud risk and the specific risk response actions that can be taken to limit exposure, through the structured discipline of enterprise risk management.

The book provides:

• A single-source reference: a description of all of the common fraud types SMEs are facing in one location.

• An overview of enterprise risk management: a tool to tackle fraud (as recommended by the Metropolitan Police Service and many other government-sponsored organisations).

• Illustrations of fraud events: diagrams/figures (where appropriate) of how frauds are carried out.

• Case studies: case studies of the fraud types described (to bring the subject to life and illustrate fraud events and their perpetrators) enabling readers to be more knowledgeable about the threats.

• Sources of support and information: a description of the relationship between the government agencies and departments.

• What to do: ‘specific actions’ to be implemented as opposed to just recommending the preparation of policies and processes that may just gather dust on a shelf.

The book gives SMEs a much better understanding of the risks they face and hence informs any discussion about the services required, what should be addressed first, in what order should remaining requirements be implemented and what will give the best value for money.

Table of Contents

Section 1: Background

Introduction to Section 1
Chapter 1 Layout of the book
Chapter 2 Introduction
Chapter 3 Approach to fraud risk management
Chapter 4 Establish the context

Section 2: External ‘actors’

Introduction to Section 2
Chapter 5:   Non delivery fraud
Chapter 6:   Ransomware Attacks
Chapter 7:   Intellectual property fraud
Chapter 8:   Business Email Compromise (BEC) Fraud
Chapter 9:   Identity theft fraud
Chapter 10: Social engineering fraud
Chapter 11  Long and short firm fraud
Chapter 12: Counterfeit goods fraud

Section 3: Internal ‘actors’

Introduction to Section 3
Chapter 13: Asset misappropriation fraud
Chapter 14: Financial Statement Fraud
Chapter 15: Bribery
Chapter 16: Procurement fraud

Section 4: Additional information

Introduction to Section 4
Appendix 1: Enterprise and project risk management terms and definitions
Appendix 2: Cybersecurity terms and definitions
Appendix 3: Organisations involved in tackling fraud and cyber security and their respective roles
Appendix 4: Further reading addressing Intellectual Property fraud