Fraud risk management intends to address the increased need to create anti-fraud measures tailored to each company so as to build barriers against fraud and misconduct. The magnitude of scandals worldwide and the subsequent implementation of new regulations stress to the company leaders the need of implementing a comprehensive strategy for fraud risk management to reduce the likelihood and the impact of fraud.

The recent developments following the reveal of great scandals have proved that even the indication that an organization has not established solid controls against fraud may have a direct negative effect in investor confidence, management credibility and brand image. To have established a sufficient risk management is not only to have implemented a sufficient system of internal controls. The top management should be committed and should communicate clearly that will build an effective fraud risk management which will have the following objectives:

• Prevention: controls designed to reduce the risk of fraud and misconduct to the lowest level possible.
• Detection: controls designed to discover fraud and misconduct when it occurs
• Response: controls designed to address the damage fraud or misconduct caused and to heal the wounds of fraud.

How we can help
KPMG's Forensic professionals assist our clients in creating fraud risk management frameworks. The framework may vary from a high level review of the organization’s anti fraud program to an in depth analysis of all the departments or of a single department.

The services we provide are:

• Diagnostic review over the existing fraud risk management to identify areas that need improvement.
• Risk assessment in relation to fraud and misconduct.
• Analysis of cultural and organizational factors that may have a direct effect in increasing or reducing fraud and misconduct risk.
• Action plans for establishing a sufficient system.
• Trainings of key personnel to early identify fraud indicators and training in responding to them.