A Fraud Risk Assessment is a methodology to identify and understand the inherent fraud risks faced by an organisation and whether the controls in place are sufficient to mitigate those risks. The outputs are the residual fraud risks, which (if outside of risk appetite) will feed into the Financial Crime Framework enhancement initiatives.
This Fraud Risk Assessment consists of two documents:
1. A Risk and Controls Scoring Tool (in Excel) utilising 35 inherent risk questions and 78 control questions to calculate the organisation's quantitative residual risk rating.
2. A Risk Assessment Template (in Word) to provide qualitative analysis of the risk rating.
The Risk Assessment covers the following Inherent Risks:
- Industry/Sector
- Products/Services
- Business Partnerships
- Transactions
- Organisation
The Risk Assessment covers the following Controls:
- Governance
- Reporting
- New Products/Services
- Due Diligence
- Monitoring
- Employee Engagement
- Assurance