What is this standard about?
This is a new standard offering guidance on fraud control measures to help protect organizations against procurement fraud.
Who is this standard for?
- Any organization, large or small, involved with procurement
- Public and private sector procurers
- Charity and voluntary sector organizations
Why should you use this standard?
Procurement fraud is a complex issue. It covers a wide range of illegal activities frombid rigging during the pre-contract award phase through to false invoicing in the post-contract award phase. It can be perpetrated both internally and externally.
Procurement fraud can be particularly difficult to detect as cases are rarely reported and so it’s difficult to measure the extent of the problem. Where fraud is detected, resource is generally channelled into investigation and prosecution which is expensive and rarely ends in a conviction or the recovery of losses.
BS 10501 offers guidelines for implementing procurement fraud controls to ensure organizations have the right preventative measures in place. It helps organizations to:
- Identify the risk of procurement fraud
- Mitigate procurement fraud
- Actively manage related risks
- Detect, report and respond to allegations or suspicions
- Monitor, review and implement control measures