As estimated by ACFE (The Association of Certified Fraud Examiners), organizations worldwide lose around 5% of their annual revenues to fraud. ACFE reports that the lack of effective internal controls is the primary contributing factor in nearly a third of all fraud cases.
A proactive approach to managing fraud risk is an important step organizations can take to mitigate exposure to fraudulent activities. Although complete elimination of all fraud risk is most likely unachievable or uneconomic organizations can take positive and constructive steps to reduce their exposure and related losses.
The purpose of the Fraud Risk Assessment is assist you in gaining a better understanding of employees’ and management’s views and perceptions in terms of the current state of the organization’s fraud risk management structure, as well as ensuring that your organization considers fraud risk in its operations and proactively prepares to respond to it.
At Deloitte Internal Controls Services, we use a variety of tools and techniques to help you conduct a Fraud Risk Assessment that fits your organization’s culture, size and needs – including interviews, interactive workshops and surveys. We perform deep dives on selected results (underlying parameters) and summarize the results for you in a final report.
The summarized results can be compared to future aspirations and strategies of the organization’s fraud policies and programs to suggest initiatives (internal controls design and implementation, governance model, roles & responsibilities) to succeed. As a result of the Fraud Risk Assessment, management will gain an overview of how to approach and plan the strengthening of the company’s fraud risk management.