Reputational Risk over Festive Season
The festive season is upon us. This creates a window of opportunity for anyone with criminal intent. The FMCG environment is stocking up with liquor, presents (Santa is coming), hi-tech / high value goods.
Before the festive season, the personnel’s mood and culture changes and most enterprises are having Christmas functions and are being payed bonuses.
This is the time when companies are at their most vulnerable. Internal controls are lacking; everyone is in a good mood and losses occur.
These losses will only be identified in January. What a way to start your new year. You are immediately on the defence and need to try and decide how the losses will be covered and recovered.
This is reputational loss in action. From the operational side to the decision-maker, who needs to treat this risk. And who are the biggest losers, the Insurance companies, of course. The claims trend is spiking and the knock-on effect is tremendous for each and every one.
The time to focus is now. Ensure that your internal controls are tested and effective and efficiently functioning.