Accounts receivables-Fraud Barriers

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Fraud Barrier

• It is time for a change
• fixed your income
• Accounts receivables Security
• A Winning Proposal

• Abdur Rahman Sagor
• Asst. Manager, Recovery, DMV
• Energypac power generation ltd

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Introduction
Most business owners fail to understand that,
just as there is a human life cycle, there is
also a business life cycle. It begins with the
conceptual or idea stage, which progresses to the
start-up period, followed by the growth phase,
then the well-established maturing years, and
finally the exit or retirement phase. most common
mistake most business owners make is that they
dont plan far enough in advance for the exit
phase.
Employee fraud is a significant problem faced by
organizations of all types, sizes, locations and
industries. While we would all like to believe
our employees are loyal and working for the
benefit of the organization (and most of them
probably are), there are still many reasons why
your employees may commit fraud and several ways
in which they might do it. According to the 2014
Report to the Nation on Occupational Fraud and
Abuse (copyright 2014 by the Association of
Certified Fraud Examiners, Inc.), research shows
that the typical organization loses 5 of its
annual revenue each year due to employee fraud.
Prevention and detection are crucial to reducing
this loss. Every organization should have a plan
in place as preventing fraud is much easier than
recovering your losses after a fraud has been
committed.
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What is fraud?
Fraud is when trickery is used to gain a
dishonest advantage, which is often financial,
over another person.
There are many words used to describe fraud
Scam, con, swindle, extortion, sham,
double-cross, hoax, cheat, ploy, ruse, hoodwink,
confidence trick. These are just a few words you
might hear in relation to fraud. Fraud can be
committed against individuals or businesses.

• Payment fraud is any fraud that involves falsely
  creating or diverting payments.
• Payment fraud can include
• creating bogus customer records and bank accounts
  so that false payments can be generated
• intercepting and altering payee details and
  amounts on cheques and Payable Orders, then
  attempting to cash them
• creating false payment and financial information
  to support fraudulent claims for benefits
• Processing false claims by accomplices for
  benefits, grants or repayments
• self authorizing payments to oneself.

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The Bangladesh economy needs !
Provision for sustainable and quality
infrastructure is a prerequisite for rapid
economic development and requires huge sustained
investment. The Bangladesh economy needs huge
investment in infrastructure development. The
importance of investor protection in attracting
private investment in infrastructure development
is enormous especially in developing countries.
We identified low- and middle-income households
based on their relationship to the county-level
median income for each respondent. Millions of
Papule is still struggling with unemployment,
lower incomes, and the loss of wealth as a
consequence.
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Fraud scoring -according to the probability that
anapplication may be fraudulent andthus alerts
you of potentiallyfraudulent applications before
youbook an account.
Fraud Scoring

• Abdur Rahman Sagor
• Asst. Manager, Recovery, DMV
• Energypac power generation ltd

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Why use a Proposal?
For the majority of family owned businesses, the
largest asset that the owners have is typically
their business. They take precautions to protect
most of their other assets, such as homeowners
insurance to protect their home, auto insurance
to protect their car, special riders to their
policies to protect other specific assets such as
jewelry etc. Yet, 70 of business owners don't do
anything to protect the survival and continuity
of their business. Now that you understand the
importance of developing a plan for your
business. Here are the five key steps along with
the most common obstacles and excuses
Getting Started
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Stops fraud
Before it happens by detecting and isolating
potentially fraudulent applications.

• Centralized Automated Accounting Systems
  Decentralized web Base Automated invoice
  reminders (Automation)
• Employment condition
• Installment Payment facilities liability
  methods
• Environmental sustainability-
• Organization culture/ethics and Transparency

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Automation

• many organizations have implemented Automation
• solutions that are woefully inadequate in
  terms of receivables and collections management
  (RCM) functionality. These Automation enterprise
  systems often replaced legacy or home-grown
  systems better suited to credit and collections
  management. As a result, RCM solutions are
  increasingly critically important to maintain
  proficiency in the corporate financial supply
  chain of accounts receivable (A/R) management.
  The inadequacy of most A/R processes is
  particularly apparent with corporate managements
  call for greater system integrity and more
  accurate reporting. The application of standards
  is continuing to generate business and system
  improvement pressure as well.

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Automation
Despite the potentially devastating consequences,
many organizations do not adequately safeguard
their high-value intellectual property. And,
while many organizations regularly use cloud
computing, most do not include cloud provisions
in their security policies.
Processing can transform your performance. Its
that simple to help organizations, not only turn
HP Management System into a more successful and
compliant activity, but also gain a significant
Competitive advantage. 1. Reduce operational
negation 2. Plan and execute precision-based
strategies 3. Apply effort where it secures the
greatest reward 4. Optimize channels 5. Make
headcount count 6. Take a fresh look at repayment
solutions 7. Improve agent negotiation skills 8.
Align management information with operational
goals
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Centralized Automated Accounting Systems
Decentralized web Base Automated invoice
reminders
Regional Office
Regional Office
Regional Office
Centralized Automated Accounting Systems
Regional Office
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• KEY FEATURES-
• Raise or pay invoices direct from Legend core
  apps
• Configurable automatic payment-date generation
• Automated credit control debt recovery
• Secure and seamless online payments
• Scheduled detail KPI reporting
• Mail email-merge capability
• Full communication history for any user to see

• KEY BENEFITS-
• Accurate revenue protection
• Easy, customer-friendly processes
• More efficient debt handling
• Allows easy payments
• Reduced Administration overhead
• Clear transaction and communications visibility
• Effective management of the whole revenue process

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Employment condition

• Settlement Agreements For Employment in future
  Cases.
• Security chuck for future Embezzlement.
• Frequently Transferable in anywhere
• Jobs Description
• Adopt, and rigorously implement, a zero tolerance
  policy towards employee fraud.
• have a clear response plan in place in case fraud
  is discovered.
• vet employees thoroughly checking employee CVs
  and references
• Restrict and closely monitor access to sensitive
  information
• Impose clear segregation of duties
• Consider job rotation
• Periodically audit processes and procedures
• promote a culture of fraud awareness among staff

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Protect your organization
Your organization also has a responsibility to
protect other employers. Simply dismissing a
fraudster enables him or her to move to another
employer where he or she will most likely
continue their fraudulent behavior. Consider
taking part in a fraud data sharing scheme, or
decide to prosecute the fraudster when the fraud
is discovered
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Installment Payment facilities liability
methods

• Bank Accounts Sources- Maximums Bank Accounts
  are create for Customers- Installment facilities.
• Look into offering online Bank payments- Dont
  stop there- D.D, P.O, continue with the ease.
  Make it possible for your customers to pay
  online.
• Always alert customers in the application if you
  decided to add a finance charge.
• Payment Liability agreement If Customers have
  pay cash for installment.

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Environmental sustainability-
Environmental sustainability- through further
development, be able to deliver cost reduction
and efficiency improvements while contributing to
Environmental sustainability.
Recommend that Some questions to ask yourself
include Who Are Your Customers? B2B or
B2C? Customer Size? Customer Type?
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Who Are Your Customers? who youre doing
business with today and who you may want to do
business with tomorrow. Whats good for one group
of customers may not be good for another and
there may be things you can do to improve the
chances that your invoices are paid on time.
Customer Type ! There may be other ways to get a
clearer picture of your customers. For example,
your business customers could fall into one of
three categories commercial, government and
industrial. Each of these three types of
customers may have specific needs that should be
addressed in your credit and collections
strategies Environment .
Customer Size? Do you serve small, medium or
large businesses? What is the distribution of
these customer sizes across your business
customer base? Strategies that work for small
companies may be less effective than strategies
you implement for larger business companies.
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B2B or B2C Do you serve business customers,
consumers or both? What percentage of customers
fall into each of these categories? What
percentage of credit and collections problems
fall into each of these categories?
Small improvements can reap huge benefits and
cost savings by avoiding financing costs of
borrowing cash during lean times when cash is
tight and by avoiding bad debt write-offs that
could have otherwise been avoided by simply being
proactive in their accounts receivable processes.
Establish a Culture of Transparency- First, in
order to minimize the chance of embezzlement,
establish a culture of transparency and
responsibility.
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Organization culture

• What is Culture?
• Personality of the organization.
• Comprised of the assumptions, values, norms and
  tangible signs of organization members and their
  behaviors.
• Difficult to express distinctly, but everyone
  knows it when they sense it.
• Particularly important when attempting to manage
  organization-wide change.

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Organization culture

• Importance
• Organizational change failure is credited to
  lack of understanding about the strong role of
  culture and the role it plays in organizations.
• That's one of the reasons that many strategic
  planners now place as much emphasis on
  identifying strategic values as they do mission
  and vision.

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Introduction Ethical
Ethical behavior and corporate social
responsibility can bring Signification benefits
to a business Ethics concern an individuals
moral judgment about right and wrong, Decisions
taken within an organization may be made by
individuals or groups, but whoever makes them
will be influenced by the culture of the company,
The decision lo behave ethically is amoral one,
employees must decide what they think is the
right course of actions This may involve
rejecting the route that would lead to the
biggest short-term profit.
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Organization culture/ethics Importance

• Honesty-Communication and behavior consistent
  with facts.
• Disclosure of information
• Promises/commitments
• Laws and professional standards
• Representation of others like shareholders
  (applies to board members)

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Business ethics
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Ethical Issues Relating to Business
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Proposal delivery
Thank you for listening!