De-mystifying fraud risk management

Organizations today are increasingly concerned about the risk of corporate fraud, given the severe and long lasting legal, economic, and reputational consequences. The Companies Act, 2013, and the revised corporate governance norms of the Securities Exchange Board of India (SEBI) for listed companies, have recognized fraud as a key risk and placed accountability for fraud risk management on the Board of Directors (the Board), audit committee and senior management. For the Board and senior management to formally govern a fraud risk management program and monitor its effectiveness, there needs to be greater understanding of the fraud risks facing the organization, as well as the gaps in the current measures employed to manage fraud risks.

This Deloitte-BCCI whitepaper outlines a model to help the Board and senior management ask the right questions to ascertain the organization’s current position on fraud risk management and suggest ways to improve its effectiveness.  It discusses:

• Challenges faced by Boards to ascertain the effectiveness of the organization’s fraud risk management practices.
• The Deloitte India model for Fraud Risk Management and how Boards can leverage this.
• Best practices to improve the effectiveness of current fraud risk management practices.