Fraud Risk Management

Fraud Risk Management

Fraud Risk Management

Fraud and poor governance … Fraud Risk Management are serious risks for all organizations. High-profile cases in recent years have shown. That dishonest behavior not only undermines profits, operating efficiencies, and reliability but can severely damage an organization’s reputation.

As a result of fraud-related collapses, governments around the world have undertaken regulatory initiatives in the fraud area. These include rules under the Sarbanes-Oxley Act in the US.

And the Corporate Law Economic Reform Program (CLERP 9) in Australia.

Certified Fraud Specialist – CFS

A fraud risk management framework:

is an essential element in meeting these corporate responsibilities of transparency and accountability. An organization must ensure this risk management framework effectively minimizes fraud risk across all its operations, while at the same time having the flexibility to adapt to change.

A fraud risk management  guide framework should include the following:

  1. Identify areas of high risk: Identifying high fraud risk areas is the first substantive step in dealing with the problem. Therefore we must do it before conducting any additional analysis and evaluation.
  2. It is important that risk identification is not confined to financial risks – for some fraud such as cybercrime and information theft, damage to reputation is a key consideration.
  3. Assess the risks: Once an organization has identified its own risk areas, a fraud risk assessment covering all relevant areas of operation can provide the platform for a framework and strategy for a sustainable, long-term monitoring and review process.
  4. Involve all staff: In order to capture fraud risk information from all staff, an electronic survey tool should be considered.
  5. We will use fraud risk across the organization or at the business or product unit level.

Electronic surveys have the following benefits:

  • Electronic surveys greatly assist in lifting levels of fraud risk awareness among staff
  • They increase understanding of the effectiveness of the organization’s existing risk management framework.
  • It’s the capacity to prevent and detect fraud
  • in a situation involving exposure to danger.
  • Even though Eva knew of the dangers, the risks, and the lack of information about this man, she let herself be drawn into this strong embrace.
  • They give staff the opportunity to report known or alleged fraudulent activity

Learn more about New data on digital fraud trends