At their most basic, Business Continuity Plans are the real-world response to the old “Hope for the best, plan for the worst” adage. It’s honest recognition that being stuck between a rock and hard place is better with a hammer, albeit with no guarantee that the hammer is big or small enough to be helpful.
Insurance loss happens for many reasons. The desire to quickly return to business as usual is a natural one, but in the wake of an event, it’s not uncommon for the resolution process to test the business owners’ resolve. And while most claims post-incident are legitimate, from time-to-time, human emotions will complicate the process and create an environment that enables fraudulent activity, sometimes in unexpected ways.
With the recent COVID-19 pandemic, business profits are down while employee terminations, furloughs and the like are up. As a result, many businesses are operating with lean staffing, which can cause breakdowns in segregation of duties, intentional or not.
Fraud is everywhere, but just a small amount of basic due diligence can help a business avoid it or other unnecessary risks. From a small-town pawnbroker that lost his business after hiring a friend whose felonious past was only revealed after a six-figure theft, to a multinational corporation that lost millions in fraudulent payments to a duplicitous supply contractor living well beyond his means, there are countless stories demonstrating the steep price paid by companies that trusted before verifying.