As the world’s leading soft drink company with 92,800 employees and a presence in 200 nations, Coca-Cola has a lot to monitor. Company card programs are certainly no exception.
At the 2010 PayStream Summit, June 15-17 in Charlotte, Coca-Cola’s Patricia Bishop will discuss continuous transaction monitoring (CTM), a growing trend designed to counter card program issues such as abuse, misuse, errors, and policy violations. The continuous monitoring program at Coca-Cola has been successful in detecting fraud, inappropriate behavior, policy violations, and waste, and as such has had demonstrable impact on the corporate audit department, travel management, expense and card programs, and most importantly, the bottom line.
The need for continuous monitoring programs is illustrated by research which has shown that organizations lose 5% of their revenue as a result of fraud. Research has also shown that 19% of business travelers admitted to exaggerating their expense reports.
When establishing a continuous monitoring program, it is important to clearly define and document program objectives as well as how success will be measured. As part of the selection process, it is critical to ensure that the technology vendor spends time understanding the complexity and the details of the business. To find the right fit, Coca-Cola conducted primary and secondary research in choosing the right technology for implementing their card program, brainstorming and piloting some 55 audit tests, revising audit test objectives, reviewing available solutions, and making reference calls to customers of their current vendor.
It is equally important to manage expectations with stakeholders and the vendor. This includes defining success, quantifying and measuring key metrics, and defining governance and reporting for the program in advance. It is vital to carry the mindset that this is an operational program that encompasses people, processes, and technology. It is also beneficial to meet with others utilizing the tool to understand risks and what was needed to transform their organization and effectively implement the program.
To get the full picture of Coca-Cola’s experience with CTM, join us at PayStream Summit this month. Participate in this and a broad range of other sessions geared towards broadening your understanding of automation technology. For a full schedule and more information about the 2010 Summit, please visit http://www.paystreamsummit.com.
