Having a reputation for integrity is crucial to safeguarding market confidence and public trust. Unfortunately, fraud and misconduct can seriously undermine such efforts, exposing an organisation to legal, regulatory, or reputational damage. That is why experienced business leaders work to ensure that they have an effective approach to mitigating these risks. This is especially important in an environment marked by intense scrutiny and rising enforcement. The area of fraud risk management is increasingly attracting mainstream attention as various stakeholders have begun to comprehend the negative effects of uncontained risk.
Why FRMS?
Building an effective fraud risk management program requires solid understanding of how and why fraud is perpetrated. The risk of fraud is just one of the many types of risks to be managed by an organization. Without clear, defined objectives, a fraud risk management program cannot be effective. The foundation of a successful fraud risk management program is a well-designed and properly executed fraud risk assessment. The use of automated continuous monitoring tools is a best practice in managing the risk of fraud. However, if not implemented properly, it can become quite time consuming and cumbersome.
A strong anti-fraud stance and proactive, comprehensive approach to combating fraud is now gradually becoming a pre-requisite and any organisation that fails to protect itself appropriately, faces increased vulnerability to fraud.
Fraud Typologies are as under:
Methods through which fraud is perpetrated:
IDBI Intech Offerings:
A timely detection of fraud incidents will go a long way in containing the losses and improving the chances of recovery. It is now time for organisations to ensure that their current fraud risk management strategies are revised to ensure that they are in line with the current fraud trends and adequate to take care of future growth besides increasing ways of detecting frauds proactively.