For modern businesses, relying on a company credit card for day-to-day expenses makes sense - at least in the short term. You want to enable your staff to get out and do their thing, and the company plastic is a simple way to let them get the job done. For most companies, this is option number one.
If there’s one thing the daily business pages will tell you, it’s this: fraud is a risk for any business. No matter how dedicated your finance team or how tight your systems, you’ll still be exposed to the possibility of being defrauded, either by an employee or an external party.