ABSTRACT
As part of good business management practices such as providing motivation, bonus incentives, educational opportunities, growth strategies, and career advancement pathways, risk management conversations should have taken place where the cost of supply chain frauds was weighed against the value of good detection and reduction programs. The board of directors and officers are responsible to the organization's stakeholders for the costs and other consequences of supply chain fraud, and therefore it is their job to ensure that systems of detection and prevention are in place, both for fraud and corruption. The board of directors must ensure that corporate officers are focused on fraud detection and reduction in private enterprises, public companies, and government agencies charged with the responsible use of taxpayer monies. The ramifications of supply chain fraud have wider implications which can adversely affect other parts of an organization or its processes. The manufacturer or distributor may be contractually liable for product replacement.
