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Technical

Keys to fraud risk oversight Logo cgma

  Dalit Stern |   Free |   Dec 2018 |   FM magazine

Risk management is a key priority for most organisations. This article considers a quantitative approach to fraud risk management through the use of evaluating fraud risk appetite (FRA) and key risk indicators (KRIs). A FRA statement is a framework that identifies where the business believes it must provide continuous monitoring. KRIs indicate where risk events can occur and they aid decision making.

Topics covered:
  • Management accounting: Technical: Risk management & internal control: Risk management policies & procedures, Advanced

1 Comments/Reflections

Robert Smith

Robert Smith Mar 2020

This article examines the use of KRIs to quantify and manage fraud risks. It is a good concise overview of the technique.

What competence did I develop?
Use of KRIs on risk management

What can I do now that I could not before?
I have a good idea on how to incorporate leading indicators in a quantitive methodology to improve the risk register.

Did I meat my learning objective?
Yes

What will be the wider impact on my team, organisation and career?
I will incorporate FRIs into the company's risk register. This should help reduce the risk of fraud and provide my team with a more measurable process.