How could the $40million NAB Executive fraud been avoided?

Forty million! That is how much an ex-NAB executive was able to defraud from the bank before being detected.

What would happen to your business if you lost even a fraction of that kind of money?

Trust is important in a business. But so is vigilance against untrustworthy people.

People are complex; as a result, the reason for defrauding a company can vary wildly. Greed is but one motivator. Too often, the people commit fraud because they believe they can get away with it. That’s why transparency in process compliance can go a long way towards deterring fraud.

Thankfully, in the age of data, we have tools like the PI Compliance Dashboards suite to aid in our vigilance.

One of the key features of the PI Compliance Dashboards allows a view into the mundane as well as the exceptional. Because often the fraud is in the details of the everyday transactions, using the PI compliance algorithms, you can find out when someone has circumvented the spend approval policies.

Armed with that knowledge, you can take the appropriate action that could be better training or some other change that ensures you don’t have a tempting loophole for fraud.

How does the Compliance Dashboard work?

The key purpose of the PI Compliance Dashboard is to monitor a procurement team’s conformity to internal processes and governance. By doing so, the Dashboards provides transparency, clarity and ensures due diligence when engaging with external suppliers.

The Dashboards exist to discourage fraud!

The PI Dashboard is a monitoring tool that brings together data from sources such as:

1. Invoice and Purchasing Card

2. Contract Management and Purchase Order systems

3. Geographic location data

4. Credit agency data for establishing supplier financial risk

5. Employee directorship and conflict of interest registers, and more!

The gathered data is then made available in formats designed for easy consumption and sense-making. The PI Compliance Dashboard uses charts, graphs and other data visualisations where appropriate. There are also summary reports available for key data points. For example, the dashboard will tell you how many contracts are set to expire in the next three or six months.

Could the dashboard have detected the NAB execs fraud?

In this particular case, if the system could have detected the conflict of interest that existed, the exec could have been flagged for further review. The PI Compliance Dashboard covers this and a whole range of other perspectives, and we are improving every day.

If you would like to know more about PI Compliance Dashboard, please contact Comprara and Purchasing Index.