Insider Risks often generate images of cyber breaches or government leaks.

But experience shows us Insiders can impact any industry, and often fly under the radar until something occurs. Whether you’re an owner, a developer, or a contractor, Insider Threats are real and pervasive on construction sites around the world.

According to the ACFE, the construction industry is among the Top Five industries impacted by fraud. The examples below examine how these risks can hide in plain sight.

Do you know your risk profile? In the graphic below, StoneTurn’s Construction and Real Estate professionals examine three common scenarios, the risks they present and how to mitigate these issues before they begin.

These include:

  • Invoices and change orders—and the need for risk management protocols to conduct due diligence and reduce the likelihood of risk flying under the radar.
  • Material audits—and how additional checks and balances in place can help safeguard against one person providing incorrect information.
  • Subcontractor and vendor risk—and ways in which background checks and other protocols can spot anomalies before they become costly problems.

Follow along for more information through our scenarios below.

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Faulty Footing: Change Orders and Invoices, Cutting Corners: Rogue Employees, Running Afoul: Kickbacks and Bribes

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StoneTurn’s Construction & Real Estate team leverages direct construction and project management experience to help construction firms and specialty contractors improve profitability by enhancing administrative, back office, and project reporting methods, processes, and technology. Learn more.

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About the Authors

Jon Critelli

Jon Critelli

Jon Critelli, a Partner with StoneTurn, draws on nearly 20 years of experience advising clients on capital projects risk management, capital program and project process reengineering, project management, control implementation, […]

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Paul Ryan

Paul Ryan, a Partner with StoneTurn, brings more than 20 years of experience in compliance, forensic audits and complex investigations. A former Assistant Deputy Inspector General of the New York […]

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Randall Coxworth

Randall Coxworth

Randall Coxworth, a Partner at StoneTurn, guides clients planning and undertaking large-scale capital projects, drawing on his 20 years of executive experience in management consulting and construction. Randall specializes in […]

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