FRM-FRAUD RISK MANAGEMENT

1. DO YOU KNOW? SERIES-06

2. Fraud Risk Management- FRM
• Fraud happens all the time.
• The problem is much bigger than what Organisations think.

3. Good People do bad things,
in the Organisations and the Controls fail!

4. A Fraud that is at First found may be like, an ice berg; you do not know
how deep and big the fraud is, like an as an ice berg .
Icebergs are huge and deep under the surface of the calm ocean
waters.
You all know about the “TITANIC”. The tragedy that stuck a luxury
passenger liner (1912) hitting an ice berg and several lives were lost
and the ship was sunk, as it was a huge ice berg under the surface of
the water.

5. Understanding FRM( Fraud risk management)

6. FRM- STEP ONE
Fraud Risk Governance
a . Understand where you are, and where you want to be.
b. Create a Culture.

7. FRM-STEP TWO
Fraud Risk Assessment
a. Think like a fraudster
b. Find out what you don’t know, by way of interviews, surveys &
workshops.
c. Most Important-” Think Out Of Box”.

8. FRM-STEP THREE
Control Of Activities
a. Use data & Data mining extensively to uncover frauds.
b. Conduct fraud awareness programmes & anti-fraud training.

9. FRM-STEP FOUR
Investigation & Corrective Action
a. Lay the ground work for a proper Investigation of the fraud.
b. Conduct the investigation, professionally.

10. FRM-STEP FIVE
Monitoring and Controls
a. Continuous monitoring process.
b. Assess the effectiveness of the processes &
procedures implemented.

11. FRM-STEP SIX
REPORTS
Any activity, make sense ,only , when a detailed Report is made.
Monthly- Quarterly- Yearly ,
with the details of observation, comments &
corrective actions with suggestions.

12. REFERENCE:
ACFE MAGAZINE
NOV-DEC-2020