Corporate Credit Cards - With Convenience Comes Risk!
Updated: 14 hours ago
The team at Lift Strategic have seen countless examples of employees misusing corporate credit cards. In many cases, credit card misuse can go undetected for months or years, resulting in significant financial losses to an organisation which are often difficult to recover.
Whether it be a public sector agency or private company, all organisations can be at risk.
While we can investigate credit card misuse in your organisation, prevention is always better than cure. And prevention starts with clear policy, education and oversight. Without each of these elements, risks of misuse are heightened.
Good policy must be clear, concise and accessible. Where there is a lack of clarity those systems can fail. Take for example the South Australian Ombudsman’s recent investigation into Flinders University’s purchasing card practices. The Ombudsman's report highlights how a seemingly small ambiguity in policy definitions can inadvertently foster a culture of inappropriate spending.**
Of course, clear policy is not the end. Ensuring those policies have been clearly explained and understood by staff is essential, as is a process to review and ensure compliance.
Is your house in order?
When was the last time you reviewed your credit card policies? Are they clear? Importantly, do your staff follow them?
The team at Lift Strategic has more than 50 years combined experience working in investigation and regulatory agencies. We know what to look for and what works.
Let us help your organisation guard against risks of credit card misuse.
** The South Australian Ombudsman's report can be viewed at here.
Michael Riches is a Director at Lift Strategic, advising leaders and boards on governance, integrity, risk management, and regulatory scrutiny.
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