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Risks are always involved in bid proposals whether they are global tenders or localize. Recognizing and mitigating risk factors is important for any bidder organization. Ignoring the risk factors may not only be expensive but also disastrous for the bidder. However the greatest risk factor is fraud in bidding. In addition, there are multiple other risks involved in the process including the risks of finance and inadequate internal controls. More often than not lack of knowledge and poor control on the part of the management can substantially enhance the security risk factors. Ignoring any of them could defeat the entire purpose of the tender.

Susceptibility to Fraud and Preventions
Procuring company may be susceptible to fraud on various counts. Especially such frauds could be prominent in global tenders processing. Some of the factors that play major role in such fraud occurring are –

* Lack of awareness in the levels of management regarding the dangers of procurement of frauds as well as necessary defenses.
* Another major factor is lack of top down commitment. Such commitment is necessary for rooting out as well as to deal with the instances of procurement frauds. Effective and punitive actions are required to be taken to deal with such cases.
* Lack of financial control on the part of the management often indulges the enterprise into fraud during any tender processing including the global tenders. Unless the people involved are aware of the financial controls and their compliance, it will not ensure good tendering process.

Risks of Inadequate Internal Control
One of the major risks involved in global tenders and their use for business promotion is inadequate internal control in the organization requisitioning the tender. Financial control requires adequate internal check. Inadequate monitoring and not reconciling the accounts with independent checks and balances are some of the factors that are important. Expense claims and invoices are required to be checked with property factors and it involves inadequate separation of duties.

Adequate Financial Information
An important ingredient for perfect assessment of global tenders is the adequate financial information. Inadequate information in this quarter can lead to all types of financial problems. Very often sufficient details are not available for identifying the anomalies. Rapid growth of expenses against any of the particular budget heads can create all sorts of problems. A reverse situation is when officers are given too many information masking significant changes and making identification too difficult. In addition sometimes information that is not properly formatted or relevant also creates problems.

Poor Control Resulting in Security Breach
Inadequate control and security aspects can create breach in the system. Inadequate control of passwords and breach in computer securities can often create problems in appropriate assessment and implementation of the global tenders.