The presentation discusses Fraud Risk Assessment (FRA) as a tool for preventing and detecting fraud by identifying risks and evaluating existing control measures. It outlines when and how to conduct an FRA, including planning, data analytics, and reporting, while highlighting challenges such as resource limitations and the inherent nature of risks. The speaker emphasizes the importance of collaboration with stakeholders and maintaining a proactive approach to fraud risk management.

1. Fraud Risk
Assessment
Charanjeet Singh, CFE, CISM
Content of this presentation is personal views of the
speaker and does not represent views of the Employer,
including current and past or any of the associations.

2. Content
What is FRA
Why it is important
When it can be/should be done
How it can be done effectively
Challenges
Q&A

3. What is FRA?
• It’s a fraud prevention tool, may also become
detection tool in some cases
• Is useful for identifying opportunities which can be
exploited by fraudsters
• Can be done at organisation level or at process/
product level
• Key objective is the identification of fraud risk and
check whether existing control design and
implementation is effective

4. Why FRA?
• Reduce opportunities
• W o r k j o i n t l y w i t h t h e
stakeholders
• Visibility and acceptance
• Prevent
• Assurance

5. when should FRA be done
• Check the status of fraud risk awareness in the organisation
• Check the timing—recent frauds/investigation, internal/external
audit observations, etc., maturity status of FRM function, new
product/process launched
• Ideally, 1st conduct organisation level and then process/product
level

6. How to conduct FRA
• Plan
• Prepare
• Fieldwork
• Analyse
• Presenting the findings
• Follow up

7. How to conduct FRA-2
• Deliverables : Report content and format
• Data Analytics : Validate
• Brain storming sessions : Participants, Assurance/
disclaimers
• Process walkthroughs : policy vs. practise, testing/
validations
• Fraud Risk Register : unique ID, maintenance
• Fraud Risk Scenarios : What ifs, combinations (P*I)

8. Challenges
• What is the need
• We Don’t have : resources/frauds/losses
• All hypothetical cases
• There’s risk in everything, we can’t eliminate each risk
• Risk rating/control rating
• Mitigating measures : More controls means more cost

9. If you want to go far, engage in team
work
Q&A
images courtesy of: http://www.freedigitalphotos.net
Content of this presentation is personal views of the
speaker and does not represent views of the Employer,
including current and past or any of the associations.