Fraud compliance and risk why early detection is

Fraud, compliance and risk why early detection is your strongest weapon against increasingly sophisticated financial crime Matthew Goss, Managing Director, Australia & New Zealand SAP Concur

Fraud: what does it mean? Obtaining something of value or avoiding an obligation by means of deception The psychology of fraud Greed and dishonesty The availability of suitable targets and the absence of capable guardians-control systems or someone “to mind the store” In financial context, the unlawful falsification or manipulation of financial information

Financial fraud, compliance and risk 1 The issue of protecting ourselves against internal and external fraud • Creating fake invoices is easier now • No corporate cards = no visibility 2 The risk from employee or supplier error • Most common area where the money gets lost

ON IT UN TI AL RT RA Y THE FRAUD TRIANGLE IO OP AT PO IS N PRESSURE/ INCENTIVE The fraud triangle and the role of corporate culture The fraud triangle: • pressure or an incentive to engage in fraud • a perceived opportunity • the ability to rationalise fraudulent behaviour Corporate culture shapes all three sides of the fraud triangle

Most at risk areas with no visibility and control 1 2 Fraudulent expense claims 3 Inaccurate claims False invoicing 4 5 Phishing scams Other frauds

Combatting fraud: the four approaches Ignore it, consider it a cost of doing business Focus on continuous improvement Take basic steps: set and enforce policies A combination of: • high-performance cybersecurity teams, • refined anti-fraud measures, using latest technology, and • a strong corporate culture of belonging, commitment, and trust.

SAUG National Summit 2019 Concur Detect: technology to protect your business • Applies machine learning to all expense reports, before reimbursement, to validate legitimacy • Integrated with Concur Expense - enables seamless, automatic processing of low-risk expenses • Flags high-risk reports for review and alerts sent real-time • Verifies expense reports against actual vendors • Option to reconcile statements and expense reports more often • Taps into external sources and social media to uncover policy violations with AI technology to confirm if a transaction is valid • Isolates fraud from accidents by tracking incidents of errors and fraud against your employee base

SAUG National Summit 2019 QUESTIONS?