What is BS 10501 about?
BS 10501 gives guidance on mitigating and actively managing the following procurement fraud risks:
- Procurement fraud committed against the organization by its personnel or others acting on its behalf or for its benefit
- Procurement fraud committed against the organization by another organization or individuals with the assistance of its personnel or others acting on its behalf or for its benefit
- Procurement fraud committed against the organization by another organization or their personnel
- Procurement fraud committed against the organization by other organizations or their personnel acting on their behalf, e.g., fraud conspiracy, bid-rigging, anti-competitive activity.
BS 10501 is applicable to all types and sizes of organizations (including small and medium enterprises) in all sectors (including the public and private sectors, and the charity and voluntary sectors).
Note-
Many countries’ laws do not define procurement fraud or define fraud in different ways. BS 10501 does not provide its definition of fraud but identifies the following specific fraud types where it is committed: false representation, failing to disclose information when there is a legal duty and/or contractual obligation to do so and abuse of position.
Who is BS 10501 for?
BS 10501 on guide to implementing procurement fraud control is useful for:
- Any organization, large or small, involved with procurement
- Public and private sector procurers
Why should you use BS 10501?
Procurement is defined by BS 10501 as the ″process of acquiring goods, works, and/or services, covering both the acquisition from third parties and in-house providers and spanning the whole life cycle from identification of needs through to the end of a services contract or the end of the useful life of an asset.
Cumbersome processes with siloed data increase a company’s vulnerability to procurement fraud. BS 10501 aids you in conducting fraud risk assessments, opening information and sharing data on vendors, sourcing, invoices, and more with the right technology that brings transparency to the procurement process and reduces the risk of fraud.