The original article has been posted on our Linkedin group by Gabriel Josiah.
🛡️ Practical Steps to Identify and Mitigate Fraud Risks
In today’s evolving risk landscape, conducting a fraud risk assessment is not just a best practice — it's a necessity for protecting organizational integrity and reputation.
✅ Here’s a brief 5-step guide:
Identify Fraud Risks
Engage departments to pinpoint areas vulnerable to fraud (e.g., procurement, payroll, cash handling).
Assess Likelihood & Impact
Evaluate how likely each fraud risk is to occur — and its potential impact if it does.
Evaluate Existing Controls
Examine whether current policies and internal controls can prevent or detect fraud in those areas.
Identify Control Gaps
Highlight where controls are weak or missing — and propose corrective actions.
Monitor, Report, and Train
Continuously monitor risks, report findings to management, and conduct regular fraud awareness training for staff.
📌 Example:
At a manufacturing firm, a fraud risk assessment revealed weak oversight in inventory reconciliation. By improving segregation of duties and introducing surprise stock counts, the company mitigated losses and boosted accountability.
🧩 Takeaway: Fraud prevention isn’t accidental — it’s intentional, structured, and ongoing. Internal audit plays a central role in making this happen.
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