Communication makes Fraud Risk Management happen

The news brought by the Association of Certified Fraud Examiners (ACFE) and Grant Thorton might be a bit irking as they predict through a survey that risk in companies internally would increase by 71%. You may have tried out many tools to manage fraud risk within your own organization/companies, but they would have lasted the lifespan of a butterfly. Since the tactics of the fraudsters are growing exponentially, there is a need for an effective toolkit that is otherwise achieved through strategic communication. As finance risk managers, you may be skeptical about communication as a bottom-line strategy, but it is! Strategic communication involves a variety of activities to spread awareness about fraud risks, so let’s take a deep dive into knowing some of them.

Need an FRM champion

To own the fraud risk management responsibilities, you need a risk professional specializing in compliance, operational risk, or internal audit. The imperative here is that anti-fraud risk management needs a dedicated FRM professional who can consistently communicate messages to the entire organization with cutting-edge information to keep them out from unwarranted risks like regulatory requirements and build appropriate best practices suiting the management.

 
Fraud Risk Management Training

Risk Management professionals have a great task of making fraud risk management education mandatory, particularly practical. The training should cover both internal and external fraud risk management. A powerful presentation communicates how fraud risks can impact the growth and performance of an organization and ultimately involves not just a section of risk specialists but the entire organization. By doing this, risk management professionals are able to build anti-risk management and whistleblower protection policies. Risk management professionals also get a chance here to review and alter the content of compliance laws and procedures time and again to ensure that they match the evolving risk landscape.

 
One-stop FRM toolkit  

While communicating how fraud can impact financial risk management in companies and organizations, you need to create a blanket of risk management policies and resources and permeate them at the enterprise level to help employees get a nuance of fraud risk management. FRMs when they create a toolkit of anti-fraud risk management strategies should make it accessible to all locations. Storing it in all places can help employees to access the necessary information to deal with new risk challenges. FRMs are responsible for framing documents and resources relevant containing contacts, solutions, and questions to better manage unforeseen organizational risks.

Include external Parties

Most of the time, risk professionals overlook the importance of third-party members in managing fraud risks. But involving third-party vendors and customers in the scheme and disseminating fraud risk information, resources and contacts can bring a great deal to the organization. Providing them with anti-fraud detection training and involving them in anti-fraud management activities can crunch time and resources for the organization and help fuel business success. A recent survey conducted by ACFE in 2020 reported that nearly 30% of the fraud risk suggestions came to risk professionals from vendors and customers.

 
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