Risk management: how to avoid purchasing fraud

Image by pch.vector on Freepik
Image by pch.vector on Freepik

There is a growing trend in the market towards outsourced processes that increase dependence on a qualified supplier base. Given this reality, risk management has become an increasingly important topic among companies, as part of a much broader theme: compliance, that is, compliance with internal and external standards.

The topic has been addressed by different factors, and among the most relevant, we can mention the new regulations and legal obligations such as SPED, Anti-Corruption Law 12.846, fiscal and labor co-responsibility in the supply chain. Added to these factors, there are also internal and external obstacles, such as economic fluctuations, market instability, among others.

Research shows that most economic crimes in Brazil occur in the corporate purchasing sector, as companies are currently unable to identify irregularities effectively. Most companies use conventional methods, making it virtually impossible to effectively detect a supplier's suitability.

In 2014, PwC conducted a survey of executives working in Brazil that revealed a higher rate of fraud in the procurement area than the global average. The main type of crime identified by the company was fraud in corporate acquisitions, cited by 44% of the 132 interviewees.

Governance and compliance practices

Implementing efficient risk management has been a challenge for organizations. Many companies seek to employ processes such as governance and compliance to optimize the management of operational procedures, without first establishing a defined strategy for corporate purchases.

New market demands mean that companies no longer see risk management as a technical necessity, but as a strategic issue that drives decision-making. This consequently increases a corporation's competitiveness and profitability.

Various aspects, such as legal qualification, verification of tax and labor regularity, economic and financial situation, technical and operational qualification and sustainability practices are also part of the monitoring of these suppliers.

With endless discussions about the Brazilian tax scenario, even due to Brazil leading the world ranking in tax collection, as well as the strict implementation of SPED, the need for solutions that better attribute the practice of tax compliance has also become extremely important, thus reducing the risk of fines.

A company associated with illicit tax practices, in addition to imputing negative aspects to its own image, in view of the current severity of punishment by the Tax Authorities, becomes liable for crimes related to tax evasion. In this context, the practice of tax compliance aims to guide corporations and ensure that they are within legal compliance.

The tax compliance methodology has a preventive action and its procedures act in the evaluation and identification of possible fraud, allowing it to take measures before a negotiation causes any type of damage.

It is known that dealing with legal requirements related to Brazilian taxation is not an easy task, but it is necessary to identify possible problems and inconsistencies in information, with the aim of preventing them from placing the company in a situation of tax risk.

Operationalization of standards

With these needs for implementing supplier risk control established, and in view of the increasing dependence on third-party companies, some challenges need to be overcome in order to lease a system that optimizes the time taken to contract a supplier and enables the operationalization of standards through well-defined processes.

Risk management challenges

A survey on the challenges of risk management conducted by Mercado Eletrônico found that companies are still more concerned about the cleanliness of their records and technical and operational qualifications. However, requirements such as sustainability and financial economy have also gained significant importance in the processes.

This scenario is changing rapidly due to the growing need for risk management, in addition to the market offering of solutions and services that assist in the implementation of supplier approval methods.

 

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