Meaning A binding agreement between 2 or more person that is enforceable by law

Buyer and seller Offer, acceptance and consideration Legal, binding and documented

Procurement The act of getting possession of something Purchasing The acquisition of something for payment

Cost Condition Consumption Compliance

At the right time For the right purpose From the right source/suppliers With the right specification and quantity Based on the right quantity/amount The right timing/period

Ensure all the right items Every process in CPP is correct and in order Peace of mind CPP dept meeting its objective and target No controversy or scandal in CPP function

Mistake Careleness Fraud Bad reputation/image Loss of investor

Fraud An illegal act of decent, concealment or violation of trust Example of fraud Crimes by individual against clients Employee fraud against employers Crimes by businesses against investors, consumers and employees Crimes against financial institution Crimes by professional criminals against major organization Crimes by individual or businesses against government E-crimes by people using IT

Fraud = P + O + T Corruption = M + D + A

P : People of organization O: Opportunity T: Target M: Monopoly D: Discretion of power A: Accountability

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Pre fraud act -Environment Fraud Act -Moment of truth Post Fraud -Attitudes

Under table money Conspiracy Theft of stock Improper purchase Fake vendors Faking signature Inflated bills Conflict of interest Usage of companies properties for personal gain

Management Audit Committee Audit Dept Compliance

Defective product/product substitution Defective testing Insider information Bribery Defective pricing False invoice

Suspension With-hold payment Forfeiture/default Legal suit

Strategic risk Operational risk Credit risk Market/finance risk IT risk Other domain

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What is KRIs - Valuable guide or barometer for the risk owner Risk Identification Know your CPP Identify all things that go wrong in CPP Agenda Process Steps & control breakdown Activities & operation

Know your employees Know your product and services Know your suppliers Conduct background checking on suppliers Review suppliers regularly

Suppliers relationship Purchasing, asset requisition and disposal 3rd party contract, outsourcing and co-outsourcing Delivery of goods Quotations, tender and bid placement Inventory and asset management Processing and negotiation Travel and advance claims of CPP staff Purchase during sales promotion Non budgeted, emergency/urgent purchase, nonbudgeted purchase

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Definition firm adherence to a code of especially moral or artistic values Integrity Consistency Honesty Trustfulness Free of hypocrisy Accuracy

Person integrity Business integrity Professional integrity Product & service integrity Record & data integrity

Environment/culture Strong internal control Establish fraud management framework Anonymous fraud reporting mechanism respond

Negative publicity Not an EOC (Employer of choice) No uniformity Unhealthy business Poor product/service Fines