This sign is just as applicable to suppliers and contractors as it is to internal departments and functions within the organization. Erratic, incomplete, late or excuse-laden management reporting is often a classic sign that something is wrong. One of the possibilities is the existence of fraud. Further investigation will reveal that lip service and increasingly tenuous explanations are given assertively to thwart follow-up activity. Common excuses used are often the frequent occurrence of IT failures, technology compatibility issues between different company systems or international systems. It is also often the case that once reports are complete, there are typically delays in them reaching those who need to review the data.
ACTION: Insist on up-to-date reporting, within a set timetable and then build this into the internal GRC (Governance Risk and Compliance) systems. Wherever appropriate, adopt an enterprise-wide approach to technology to help with systems issues.