July/August 2018

July/August 2018
Risk Management
Vol. 16, No. 5

Managing Risk in the Marketplace: Advice from the Big Four Appraisal Firms

The economy may be booming, but these are still turbulent times with a shifting environment propelled by tax cuts, tariffs levied against Canada and China, and the possibility of a trade war. For guidance, ABF Journal editor Nadine Bonner turns to executives from the nation’s top four appraisal firms. In addition to a perspective on how technology and globalization have changed businesses practices, they offer sound advice to help ABL lenders steer a steady course and avoid crashing on the rocks.

Nation-State Cyber Threats: Corporations Must Be Proactive and Prepared

Alvarez & Marsal managing directors, Art Ehuan and Scott Harrison discuss a recent paradigm shift in cyber risk models: nation-state cyber threats. They outline essential steps for corporations to follow in order to minimize exposure to this risk and to ensure that an effective action plan is in place in the event of an attack.

Anatomy of a Fraud: Playing Defense to Minimize Losses

Joseph Iannuccilli, founder and CEO of Sound Shore Financial, recounts a memorable fraud uncovered by his field examination firm, and illuminates why a field exam is key to avoiding or minimizing loan losses for a lender. In this case, the lender noticed availability tightening, receivable turnover dramatically increasing and the loan balance rising.

Reconstructing the Crime — Lessons Learned on How to Catch A/R Fraud

Kevin P. Durkin, an experienced instructor with the Commercial Finance Association / Field Examination School, has spent hours plowing through court documents to study accounts receivable frauds and to learn how to better detect these scams in the future. He shares his insights on lessons learned.

Minimizing Fraud… Checks, Balances & Vigilance Go a Long Way

Fraud not only costs a company money, but also can affect its relationship with shareholders, employees, customers, vendors and financial institutions. Riveron Consulting’s Andy Baker explains how strong policies and consistent oversight can go a long way toward minimizing the possibility of fraud.

The Detection of Change: Technology Advances in the Management of Risk

Ever since commercial lending was identified as one of the most appropriate financial products to support rapidly growing companies, lenders everywhere have suffered at the hands of fraudsters. It is almost an inevitable consequence of financing dynamic collateral such as accounts receivable.

The Fishmonger and the Feds – Unwrapping Ocean Fresh Seafood’s Multi-Million-Dollar Fraud

There was something fishy going on at Massachusetts-based Ocean Fresh Seafood, and it wasn’t just the inventory. By the time Wells Fargo auditors found the source of the smell, they’d been defrauded out of at least $7 million, and the man who allegedly orchestrated the scheme was in the wind. Here’s how it played out…

Detecting & Derailing Fraud

When considering your organization’s approach to detecting, eliminating and preventing fraud, trust your intuition and suspicions, and take a hard look into the facts surrounding any gut feeling you have. Put practical procedures in place, then monitor the environment in high-risk areas. When it comes to fraud, it’s not a matter of “if” it will happen, but rather, of how well you are prepared when it does.