All organizations are subject to fraud risks and need to complete a fraud risk assessment for their organization at least twice a year. A detailed fraud assessment needs to be performed by each function and the organization considering the holistic approach and ERM approach. While there is a common misconception about organizations not being vulnerable to fraud risk because no incidences have been reported, the experience shows otherwise. Most organizations who have not performed fraud risk assessment due to lack of fraud incidences are exposed to the risk of not being able to detect fraud due to lack of process designed to do so or lack of awareness.
Fraud remains a serious and costly problem for virtually every type of organization in every part of the world. The risks of fraud may only be increasing, as we see increasing complexity in the process and technology.
Despite the serious risk that fraud presents to business, many organizations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. Yet, most research shows that organizations which actively manage their fraud risk reap beneļ¬ts in terms of reducing the negative impact of fraud.
You can learn more about fraud risk assessment by visiting: https://www.acfe.com/uploadedfiles/acfe_website/content/documents/managing-business-risk.pdf.
