During the COVID-19 pandemic, organizations of all sizes have had to deal with the financial implications of adjusting business practices. Among the lessons learned:
- Good and bad spending have reversed roles. Instead of travel for meetings and conferences, companies are investing in the devices and technology to enable virtual participation in these events. Particularly, mail orders are up for companies like Best Buy and Apple.
- Risk patterns are shifting. Risk looks much different than it did before the pandemic, and finance operation teams are putting more scrutiny on employee spending.
- Rising miscellaneous and out-of-pocket costs cause payment platform risks. A greater reliance by employees on online shopping for devices, equipment, and supplies brings with it greater exposure to data security concerns.
- People spending is a new risk. According to national data, about 5% of employees could/will use opportunities such as a pandemic to spend maliciously or otherwise violate compliance guidelines.
More than ever, it will be important to align your teams, share information, and ensure transparency regarding spending. By keeping a finger on the pulse of spending and having a way to quickly identify red flags, you will be better able to manage and mitigate risk.
