Proactive Approaches to Fraud Risk Management

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Take a proactive approach to fraud management with RiskOversight by increasing visibility in your organization’s top fraud risks.

Executive management is behind us 100%. They know where our efforts and time should be spent — not sitting at a desk writing a report. They know our manpower should be spent researching and testing, looking for fraud.

Melissa Gonzalez

First VP & Senior Auditor

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Top Benefits of a Proactive Approach to Fraud Risk Management

Valuable Insight

Organizations that implement effective fraud risk management will gain a greater understanding of their strengths and weaknesses and allow insight into top weaknesses so they can be mitigated prior to causing serious harm.

Organizational Alignment

A successful fraud risk management program will allow for effective corporate governance throughout the organization ensuring alignment accross all business units on top fraud risks and mitigation plans.

Continuous Response

Fraud risk management enables a continuous response to risk to be implemented across the organization, allowing business units to have clear insights into mitigation plans and their call to action, effectively eliminating grey areas.

What Is Fraud Risk Management?

Fraud risk management is aimed at proactively addressing a business’s vulnerabilities to internal and external fraud. Fraud follows opportunity and attacks weakness. It is important to understand where your organization is vulnerable and establish mitigation strategies to take control. A successful fraud risk management program will allow for effective corporate governance throughout the organization. Additionally, the program will establish continuous or periodic monitoring of fraud controls through fraud risk assessments or technology to detect early warning signs of fraud. This will allow the organization time to develop response plans. Only through ongoing effort can an organization protect itself against significant acts of fraud.

What Is a Fraud Risk Assessment? And Why Do I Need One?

What Is a Fraud Risk Assessment? And Why Do I Need One?

Who Needs Fraud Risk Management?

Every organization needs fraud risk management. Maintaining a reputation for integrity is crucial to safeguarding market confidence and establishing continuous customer trust. When fraud occurs within an organization, it can seriously impact the integrity of an organization and lead to legal, regulatory, or reputational damage. This is why it is important for all business leaders to ensure their organization has an effective approach to mitigating fraud risk. It is important for all stakeholders, up through the board of directors, to drive effective fraud risk management.

What Is the Purpose of Fraud Risk Management?

Fraud risk management provides insight into fraud prevention, detection, and response. It is essential to helping businesses proactively identify external and internal risks that can have a significant impact on their reputation, assets, and exposure to criminal or civil liability. A strategic component of fraud risk management is the fraud risk assessment, which should address four key areas: asset misappropriation, financial and non-financial reporting, regulatory compliance, and illegal acts. The results of the risk assessment should drive the fraud risk management program and organizations should implement continuous or periodic monitoring of fraud risks to identify their exposure to fraud risks or vulnerabilities.

How Can I Manage Fraud Risk with AuditBoard?

RiskOversight integrates and elevates your fraud risk management program — including the identification, assessment, response, mitigation, and monitoring of fraud-related risks — in a highly visual and intuitive way. RiskOversight enables you to categorize fraud risks that are integrated across your organization and allows users to gain insight into top fraud risks and trends. Additionally, executive-level dashboards and detailed board of director reports allow for a holistic view of your overall fraud risk appetite.

Resources

Fraud Risk Management Resources

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