Fraud Risk Assessment
The strategic goal of long-term sustainability requires the assessment of inherent fraud risks on a continuous basis. This entails carrying out a comprehensive review of the activities of an entity to identify, analyze and evaluate areas of vulnerability to fraud, and ensure that adequate steps are taken to mitigate identified fraud risks. Therefore, periodic fraud risk assessment is a pre-emptive and necessary activity to reduce fraud risk exposure and the attendant reputational and financial risks.
Fraud risk assessment comprises the following:
- Identification of Fraud Risks: Identify specific types of risks based on established fraud typologies, such as cyber theft or fraudulent disbursements.
- Consideration of the Likelihood of Occurrence: Estimate the probability of occurrence of the risk, from low likelihood to almost certain likelihood.
- Estimation of Potential Impact: Evaluate the potential impact, from low to high impact.
- Evaluation of Anti-Fraud Controls: Identify and assess the adequacy of existing controls established by management to mitigate fraud risk.
- Notification of Remedial Action: Propose corrective actions or additional controls to Management.
- Determination of Responsible Person: Assign responsibility for implementing controls and mitigation efforts.
Setivel will ensure that you are consciously aware of inherent fraud risks in your business activities and operations, and advise on the best solution(s) to mitigate such risks.