*We cannot speak about risk management without looking at the recent tragedy in the Gulf of Mexico. The consequence of overlooking all the warning signs is immense; loss of human life, loss of wild life, loss of revenue and finanical losses in the billions of dollars. BP is now reporting a $17 billion loss for one quarter, estimating $32.2 billion for clean-up, and the additional costs of pending law suits, which is expected to easily exceed the $20 billion already set aside.
Workers now report seeing unsafe practices and equipment on the doomed oil rig and are claiming that top officials were more interested in digging than in safety. BP is now under a criminal investigation.
*Private emails between climate scientist were stolen and disseminated to the press, damaging reputations of all those involved. Yet after the information within the emails were misconstrued, seriously affecting reputations, the Copenhagen conference on climate change and resulted in numerous investigations into the work of the scientist - the end result which no one is now paying attention to is:
Investigative findings exonerated the scientists in question finding “no substance” to any of the allegations made against them and their research findings on climate control.
*The National Retail Federation reported $41.6 billion in losses for one year – 47% was due to employee theft.
Risk for nonprofits:
With billions of dollars in revenue, nonprofits are vulnerable to fraud, theft, embezzlement and corruption. Whilst most are honorable, there are cases such as:
*A New York politician is being sued by the NY Attorney General for taking $14 million from his [government-funded] Bronx clinic
*
Executive director stole in excess of $29,000.00 from Search and Find Emergency Responders.
*Former officers of a Dallas charity foundation ordered to pay $14 million for defrauding the charity.
*Boy Scout leaders in Texas reported a one year salary of $1.16 million, $69,000 for first class airline tickets, $72,000 for spousal travel, and had memberships in private clubs costing $11,000.
*Holy Land Foundation for Relief and Development (HLF) arrested by the FBI and convicted of helping a terrorist organization.
Who suffers? Everyone: the business owner, the nonprofits, the consumer - citizens - the individuals who need service –
the victims who are re-victimized.
CORIE CARES
CORIE teams of forensic accountants, computer forensics and investigators will conduct inspections and evaluations where it counts -on location.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
An often used phrase in criminal, civil, and arbitration cases is “known or should have known.” The latter, “should have known” leaves you, as management, the organization and the company somewhat defenseless since it is open to interpretation. Conversely, requesting an inspection and evaluation of your policies and procedures shows your attempt to “be in the know” placing you in a far better position in the event of legal action.
An inspection and evaluation in the end saves you money - saves your organization, your reputation and your life work.
