Fraud Health Checks / Risk Assessments

As a result of Covid-19, some business landscapes have changed dramatically, potentially providing opportunities for fraudsters to exploit weaknesses in new processes and procedures.

As a threat to business, fraud ranks as one of the key risks to be managed. It is an expensive drain on financial resources and not identifying and tackling the risk can make organisations vulnerable. 

As organisations ‘reset’, this may be the time to review what counter fraud measures are in place by conducting a Fraud Health Check.

A Fraud Health Check is a simple method of identifying potential gaps in an organisation’s counter fraud strategy.  The early identification of risk will increase the opportunity of resolving issues before they are exploited and expose the business to financial losses.

A High Level Fraud Health Check provides an idea of your organisation’s performance in countering fraud. The assessment involves broad judgements, whereas a more extensive risk assessment would provide more detailed results. The Fraud Health Check enables the quick identification of areas for potential improvement. The assessment is only provided to help communicate an overall impression.

Counter Fraud activity must evolve within a business over time, and it is essential that a fraud risk assessment is conducted prior to establishing a structured counter fraud program. Fraud presents itself not just in the financial workings of a company, but also throughout its operations. The type, nature and location of a business, as well as its culture and position in the economy, are all part of determining what type of fraudulent activity it might be exposed to.

Risk Assessments are a forward-looking survey of the business environment to identify anything that could prevent the
accomplishment of organisational objectives. As it relates to fraud deterrence, risk assessment involves the Identification of internal and external means that could potentially defeat the organisation’s internal control structure, compromise an asset, and conceal the actions from management. Risk assessment is a creative process; it involves identifying as many potential threats to the business as possible and evaluating them in a way to determine which require action, and the priority for that action.

Whilst also fulfilling regulatory requirements, tackling fraud, abuse and maladministration effectively reduces financial losses and can create a unique selling point for businesses. It provides confidence to stakeholders and partners that investments are being safeguarded and highlights to customers and clients a commitment to reducing unnecessary costs.

Contact us for more details about Fraud Health Checks or Risk Assessments