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© 2018 SAP SE or an SAP affiliate company. All rights reserved.

Ayla Sauer | Solutions Consultant Senior – SAP Concur

Jameson Hughes | Solutions Consultant Senior – SAP Concur

Fending off Fraud and Keeping ComplianceHow to Better Detect, Manage and Prevent Risks at Your Organization


Ayla Sauer Solutions Consultant Senior – SAP Concur


- Setting the Stage on Compliance & Fraud

- The Cost of Non-Compliance

- How Technology Can Help Mitigate Risks

- Q&A

Agenda


Setting the Stage on Compliance and Fraud

Employee-initiated spend

Many channels for potential

fraud

Audits (internal and external)

Rules and regulations:

• Sarbanes-Oxley

• The Sunshine Act

• The Department of Commerce

and Consumer Affairs

• Securities industry

• Union regulations

• FCPA

• Dodd-Frank

• Bribery Act


Why is fraud in the spotlight

Big data. Better data.

More checks and

balances.

Increase in regulations

and compliance.

Risk to reputation.

Fraud is an enterprise risk!


Top 4 Expense Categories

Total revenue lost to fraud

5%

16% Individual meals

8% Car rental

22% Hotel

34% Airfare


Common Travel Fraud Schemes

✓Profitable per-diems

✓Mileage padding

✓Fake expenses

✓Unused airline tickets

✓ Last-minute flight bookings


Has Your Company Found Any Of These Expenses Submitted?


Double-dipping Schemes across different

financial systems

Pattern identification

Common Expense Fraud Schemes


How to Stop Fraud Before it Starts

Mistakes Happen1. Mitigating Errors2.

10% of travelers have at least one duplicate

expense. Catching duplicates enables you to

highlight actual incidences of fraud.

Mandating a corporate card program makes it

possible to prevent and/or flag out-of-policy

spend before the money goes out the door.


How to Stop Fraud Before it Starts (continued)

Focus on Communication3. Put the Plan in Action4.

Adopt a zero-tolerance fraud policy and let

employees know that all expense

reimbursement claims are open to audits.

Set up proper audit rules, use effective spend

reports that identify trends and outliers, and

revisit policies and procedures to manage risk.


Jameson HughesSolutions Consultant Senior – SAP Concur


The Cost of Non-Compliance

by a global telecom

37%

$2,448

$965m

$800m

$795m

of business travelers had at least one exception on their T&E reports

average reimbursement amount requested by employees who submit fraudulent claims

Top penalties for Foreign Corrupt Practices Act (FCPA) violations include:

by a multinational technology company

by a European telco


Proactively Preventing Compliance Risk

Understand your business network.1.

Implement the appropriate controls.2.

Maintain clear and correct records.3.


Proactively Preventing Compliance Risk (continued)

Implement a comprehensive audit process.4.

• Audit receipt types and itemizations

• Audit cash expenses

• Conduct random checks

• Identify location and type of expense and where

• Verify employment and look for behavior patterns

• Use a third-party auditor to maintain credibility

Education around clear policies.5.


Key Considerations for Building a Scalable Audit Process

When You Should Audit Best Practice Recommendation

• Before manager approval

• After manager approval

• After payment

• Before expense reports are

approved


Building a Scalable Audit Process (continued)

What You Should Audit Best Practice Recommendation

• Randomly selected claims

• One global T&E policy

• Specific expense types and

duplicates

• Audit 100% now, and then get

selective


Building a Scalable Audit Process (continued)

Why You Should Audit Best Practice Recommendation

• Drive policy compliance

• Control costs

• Identify bad behaviors

• Reduce your risk

• Pinpoint problem areas through

auditing, and maintain an end-to-

end process that keeps you in

control and your organization

protected


How Technology Can Help Mitigate Risks


Technology for Risk Prevention

1. Visibility and control

2. Policies and workflows

3. Speed and simplicity


Technology for Risk Prevention (continued)

1. Ease of use

2. Visibility into all travel bookings

3. Independent audit

4. Flexible reporting


SAP Concur is Your Partner for Compliance and Fraud Prevention

Audit Service Concur Detect

• Certify each expense against your

policy

• Identify non-compliance expenses prior

to reimbursement

• Ensure all employees are compliant

using independent auditors

• Consult on best practices

• Reduce expense report errors by up to

66%

• Capture 10 times the amount of errors

and fraud before reimbursement

• Shorten auditing time by as much as

90%

• Audit 100% of expense reports


Combating Fraud and Non-Compliance is Not a One-Size-Fits-All Approach

Questions?


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