Ace the CPPO Challenge 2025 – Unlock Procurement Power and Shine!

A lapse in ethical behavior or oversight serves as a significant risk factor for procurement fraud. When individuals or organizations do not adhere to high ethical standards or when oversight mechanisms are weak, there is an increased likelihood that unethical practices will occur. This could include actions like collusion with suppliers, bid rigging, or misappropriation of funds. The absence of a robust ethical framework and vigilant oversight creates an environment where fraudulent activities can thrive, as individuals may feel emboldened to act dishonestly without fear of detection or consequence.

In contrast, the other options highlight measures that generally help mitigate the risk of procurement fraud. A thorough evaluation process for suppliers ensures that only qualified and reputable vendors are selected, reducing the chance of fraudulent practices occurring among suppliers. A well-defined procurement policy establishes clear guidelines and standards that govern procurement activities, further deterring unethical behavior. Regular audits of procurement activities provide checks and balances that can uncover and address potential fraud early on, thereby reinforcing accountability and integrity within the procurement process.