Fraud Risk Reduction

Coins and pens on paper

What is a Fraud Risk Assessment?

A Fraud Risk Assessment is a systematic approach to reviewing the likelihood and significance of potential frauds occurring in your organization.  

Many organizations are at risk of losses due to employee fraud as well as cyber fraud from outside hackers.

Why are Fraud Risk Assessments important?

Every organization, regardless of size or industry, faces fraud risk. Following certain protocols can help you prevent and detect fraud before it causes too much destruction in your organization.

What constitutes fraud prevention activities?

  • Good governance
  • Segregation of duties
  • Proper supervision and review
  • Authorization and approval of financial transactions
  • Internal audit reviews
  • Annual audits and reviews

What controls help Detect Fraud?

  • Being aware of the red flags associated with fraud
  • Confidential reporting lines for employees, customers and suppliers
  • Customer/supplier feedback
  • Job rotation/mandatory vacations
  • Data analytics
  • Spot checks

What is Fraud Awareness training all about?

  • Fraud statistics
  • Criminology theory
  • Fraud indicators
  • Fraud reporting
  • Implication of fraud on organizations
  • What each person can do to help prevent and detect fraud

Can I get insurance to cover against Employee Fraud?

Yes, it is a very important aspect of risk reduction in any organization. It is well worth looking into.  Insurance will give you peace of mind but it will not eliminate the hassle of dealing with fraud in your organization, including:

  • the time and cost to investigate a fraud; and 
  • potential reputation damage as a result of a fraud incident.  

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What are some examples of cases?

  • A company is concerned that a particular area of their business may be susceptible to fraud. A review identified several areas at risk and recommendations were made to improve internal controls.
  • An organization wants to train its employees about fraud risk factors and red flags in order to help them identify fraud and report it on their company hotline. A workshop is conducted to educate the employees.
  • A board of directors is concerned about fraud risk in their organization and conducts a fraud risk assessment which reveals certain risk areas in their organization that requires attention.   

Contact Us

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Walters Financial Forensics

4761 Wesley Drive, Delta, British Columbia V4M 1W7, Canada

+16043747722