According to a report from the Association of Certified Fraud Examiners (ACFE), only 15 percent of fraud victims recover all losses and more than half recover nothing at all. For those in the resort and hotel space, this could mean major financial losses that can make it hard to recoup from.
But what about when fraud is executed at the hands of employees on the inside? Whether they’re witting or unwitting, employees can open the door to major fraud risks inside hotels, leaving other employees and customers open to massive financial issues. And while having effective coverage, such as insurance programs for resort hotels, is important, it still helps to have an understanding of how to limit risks, such as credit card fraud, time theft, and more.
By working together and upping communication efforts, fraud risks can be cut down before the potential of them happening even rises. There should be an internal collaboration to help avoid fraud risks in which open and honest conversations are encouraged. It’s important for leadership to firmly and effectively support dialogue among employees and hold each other accountable. Talking about fraud in a proactive way can be an effective way to shine a light on dishonesty in the resort and hotel field among employees.
Working hand in hand with collaboration, corporate leaders understand that an effective level of communication is an important piece of a successful hotel’s business operations. An effective communication plan can be the thing that drives honesty among employees.
A goal should be to create effective messaging that is relevant, practical, and timely in order to limit risk. The key is to not overexpose fraud awareness to a point that employees end up becoming numb to it. Leaders at a resort can work with team leads, communications professionals, and human resources to come up with the right level of effective fraud communications.
Employees should be enabled to recognize possible wrongdoing and make sure they know how and where to report it. The options for employees to report wrongdoing should be communicated and distributed through emails and weekly meetings to make sure everyone knows how they can get in touch.
3. Employee Training
Employees are the best weapon when it comes to cutting down on employee fraud risk. Having the right education around this subject can help employees identify potential fraud and encourage them to promptly report it. Training should make clear that if an employee witnesses a possible fraud, they cannot act on it except to report it as taking matters into their own hands may interfere with a proper investigation.
Designing an effective program must be a collaborative process that considers goals of management and objectives as well as looks at risk, vulnerabilities, cost-benefit, and more. Fraud and ethics training should be included as part of overall corporate training and fit to address roles and responsibilities from the top down. This will help to advise employees about the investment the hotel is making into doing what is right.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.