When making any type of investment, one of the first questions many organizations will have is what is the return on investment or ROI?
Fastpath Assure is a platform that provides a combination of Detective, Preventive, and Reactive controls to help businesses take control over their fraud, auditing, and compliance management efforts.
Recently, GRC 20/20 Research analyzed the efficiencies provided by Fastpath to perform eight essential tasks related to managing access risk in organizations running multiple business applications and found that Fastpath is able to deliver measurable ROI, paying for itself within the first year regardless of the size of the organization.
When judging the effectiveness of a fraud prevention tool such as Fastpath, it can be difficult to assign a value to the prevention of a loss that has not even occurred yet. However, this calculation is not impossible. In our latest eBook “Fastpath ROI: Realizing Value Through Fraud, Auditing, And Compliance Management,” we aim to answer the question: What is the ROI from using Fastpath Assure? In this blog we will look at one aspect of the answer to this very question.
One way to look at the ROI of Fastpath as it pertains to fraud prevention is to look at known statistics related to fraud within organizations of different sizes and geographics and apply them to businesses that fit similar criteria. For example, according to the Association of Certified Fraud Examiners (AFCE) businesses lose 5 percent of their revenue to fraud every year for an average loss per case of $1.5 million. This calculation can be applied to any organization and with that information decision makers are able to consider whether there is sufficient return of investment if they were to procure a tool like Fastpath Assure.
While there is no exact formula to calculate ROI, the following statistics from the 2020 AFCE Report to the Nations can help monetize and quantify the potential loss from lack of fraud prevention and access control:
- The typical fraud case lasts 14 months before detection with an average loss of $8,300 per month. The longer a fraud remains undetected, the greater the financial losses.
- Roughly half of all victim organizations in the US and Western Europe failed to recover any of their losses due to fraud, and about another third only recovered a portion of their losses.
- Incidents of fraud were reported in relatively equal percentages in small, medium, and large organizations (based on number of employees); however, smaller businesses are more likely to feel the impact of those losses than their larger counterparts.
- A lack of internal controls contributed to nearly one third of all fraud. The presence of anti-fraud controls is associated with lower fraud losses and quicker fraud detection.
Based on these statistics, it is clear that every business is exposed to some risk of fraud which can be a material risk. Fastpath can help organizations of any size realize measurable ROI through controls that detect and prevent fraud, and assist with related compliance programs which focus in this area.
To learn more how Fastpath can help your organization have greater control over your fraud, auditing, and compliance management efforts—with a measured ROI within the first year of operation—download our latest eBook here.