Tag Archives: business

Keep Rolling

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When I first started running, I was out training, and my knee suddenly buckled in pain. I thought I had broken something, but it turned out that I had IT band syndrome. I tried several approaches to get better. Among these, I would change up my routes so that I was balancing out which leg was favored, I worked to improve my gait and I started foam rolling. No one warned me about that rolling. I think tears sprung to my eyes that first day I foam rolled. I know for sure that I yelped in pain, several times (thankfully I was alone). I couldn’t believe that I was supposed to do this every day, but I had to roll through the pain because I had a race on my schedule and I needed my knee to start working again.

After rolling consistently, I was amazed by how much better everything worked. I was also incredibly relieved that the rolling didn’t hurt so much anymore. I was a foam rolling disciple and whenever anyone told me they were contemplating taking up running, I urged them to also contemplate taking up foam rolling. At a point, I actually found joy in foam rolling. I could get through a rolling session with nary a yelp. It was glorious.

Recently, foam rolling slipped out of my life. After a fall apparently chipped a piece of my knee into non-existence, I could not run at all and I was, instead, focused on weight training to strengthen my knees. At the end of a week of working out, the trainer advised a foam rolling session. I didn’t even think twice; I hadn’t been running, how bad could things be? Painfully terrible, it turns out.

Managing controls in a business works in a similar manner. Sometimes, when a company sets up or has an auditor highlight weaknesses in its control systems, the company will go about creating policies and procedures that address risks and institute controls. At times, with that company, new hires will be given these manuals to read and, if they are lucky, these new employees will receive training. This training will teach the employees about the culture of the company and how to follow policies and procedures, in order to minimize risk within that company. However, how often will that company review its policies and procedures to see if they are relevant to technological advances and new risks that have arisen?

  • How often will the company’s leadership review policies and procedures with existing staff, to ensure that people have not slacked off and are still, for instance, getting the approvals that they are supposed to obtain for transactions?
  • Is anyone checking that reconciliations are occurring monthly (or at whatever frequency has been established) and, once performed, that those reconciliations are being reviewed by the relevant staff?
  • If there is a policy for checks over a certain amount to be signed by two signatories, is anyone reviewing to make sure this is the case?
  • When employees have left the company, have their access to the company’s system been suspended? Once suspended, have their accounts been deleted so that no one else in the company can use them? If they were signatories for bank accounts, has the bank been informed and has the bank removed them from the signatory list?
  • Have the company’s staff received training in how to reduce the risk of phishing?
  • Has the company’s leadership received any training themselves to update them on current risks and to remind them what the policies and procedures of the company are?

These are just a few examples of the many ways in which a company should be regularly checking in and exercising its control muscles. If all you are doing is handing over a manual on day one and assuming that your staff knows what and how they need to do things, you are only setting yourself up for possible pain in the future.

  • Can you be surprised if one of your staff members gets phished and hackers gain access to your company? Think about the pain of finding out that someone pretending to be the CEO sent an email that instructed accounts payable to wire a sizeable amount of money to an offshore account and that accounts payable fell for the scam?
  • If no one is regularly reconciling accounts, can you really be shocked when you discover that an employee has taken advantage of this lack of oversight and embezzled money?
  • If accounts of former employees are not properly suspended and deleted, how will you figure out who has been using them since the former employee left? How will you be able to trace unauthorized transactions?
  • If your company’s leadership is not up to date on policies and procedures, how can they enforce them? At that point, everyone will be just guessing and hoping for the best. Being unprepared and hoping for the best tends to only work out well in the movies.

Maintaining and updating policies and procedures should be a proactive and continuous activity. Speak with a forensic CPA about how to create, institute and regularly review your control systems to reduce risk in your company. It may seem like schlep in the beginning, but having the systems serves a deterrent to those contemplating wrongdoing, it also keeps your staff more educated about how, for instance, they can recognize errors or attempts to suck them into a scam. This can also mean that when something is going awry, it is spotted earlier, minimizing possible losses.

You should be doing this to avoid or, at the very least, minimize any future pain. You don’t want to be like me where incredible pain leads to you even more pain, on the eventual path to healing. Take it from my IT band, proactive is so much better than reactive.

 

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Regular Check-Ups

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Several years ago, I received a phone call from my bank. I was surprised to receive this phone call as I was probably this bank’s least profitable customer. I had recently moved to New York, it was my first bank account there and the account was remarkable only in how low its balances could get, especially just after I paid my rent check. The very nice woman on the line was calling to let me know that the bank believed that they had discovered fraudulent activity in my account. The bank noticed that, at least once a week, between $9.95 and $14.95 was being withdrawn from my account. The withdrawals were regular and, every time it happened, the name of the company making the withdrawal was slightly different from before. The regularity of the withdrawals, along with the amounts and the slight name changes, were all red flags for the bank. I was very grateful that the bank had spotted this and, quite frankly, rather shocked. I had assumed two things – first, that I was too poor to rob and, second, that the small transactions going through my account, on the rare occasions that I actually noticed them, were trips to the pharmacy or a lunch that I had forgotten about. It turned out that I was wrong on both accounts and an unscrupulous party took advantage of the lax attitude I had toward my finances. For over three months, at least once a week, money had trickled out of my account. Luckily for me, the bank helped me trace the amounts and credited my account. It seems that, in more recent times, banks are more likely to allow this kind of fraud to continue. They have decided to earn fees from these transactions instead of alerting their customers of these possible frauds.

After this incident, feeling violated by this invasion of my space (and funds) I became very diligent about checking my money. I had been very lucky. Yes, my money was being taken without my knowledge, but I was able to recover most of the funds and I had the bank looking out for me. Not many are so fortunate these days. It is important, therefore, to take steps to minimize the chances of unauthorized access to your bank account or, at the very least, to be able to quickly spot, stop and dispute transactions that you don’t recognize.

  • Be very careful about who you give your personal and financial information to, especially when this request comes via a cold call. Even if the person on the line sounds official, check the credentials. If need be, hang up and call up the organization that claims to be on the phone, using the contact number that you have in your records. If the person on the phone is a valid representative, they will not mind you checking to make sure things are above-board.
  • Check your bank and credit card balances often – at least once a week, if you can. Just about every bank has online banking facilities available to customers. Here, you can review recent transactions and make sure you know what happened with each one.
  • Be aware of the risks to seniors that you know, be they relatives or friends. Because of programs that tend to affect seniors, such as medicare and social security, they are particular targets for the unscrupulous. Fraudsters will call senior citizens and either cajole or scare them into giving up their information. Check in with those who may be vulnerable, either because of advancing age or lack of computer savvy, and make sure no one is raiding their accounts.
  • Safeguard the physical information you have on your accounts. Keep statements and account numbers in a safe place. The last thing you want is to find out that a guest or someone who has worked in your home, has taken your information and used it to gain access to your money. Don’t leave the temptation out in the open – that is only asking for trouble.
  • Should you come across odd activity in your account, be sure to call your financial institution and look into the matter. Time is of the essence here as, often, after a time, it becomes near impossible to reverse a transaction, even if you can show that it was unauthorized.

Once keeping track of your money becomes a habit, it also becomes a very simple exercise. If you check-in regularly, there are only a few transactions to remember at a time. Also if you check-in regularly, you will also become more familiar with your own spending patterns and be better able to spot irregularities. As a bonus, if you check-in regularly, you may also realize that you have bad spending habits that need some rehabilitation. It doesn’t matter how much or how little money you believe you have, there is always enough for someone to take away from you. All of this monitoring of finances may sound a touch paranoid, but paranoid is often better than broke.

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