Restoring trust through enhanced fraud risk management

Fraud is on the rise, with new working practices, market and supply chain disruption and global instability all increasing the motivation, rationalisation and opportunity to commit fraud. Despite this, fraud risk management is not getting the attention it deserves with many companies not dedicating enough resources to fraud risk assessment, governance and effective fraud prevention and detection controls.

Following their consultation on 'Restoring trust in audit and corporate governance' the Government announced in its Response Statement that it will introduce a statutory requirement for companies that have 750 or more employees and £750m or more annual turnover to disclose in their Annual Report the steps they have taken to prevent and detect material fraud. The legislation to implement this requirement has been withdrawn, but we continue to believe that a robust fraud risk management framework is critical to a company's overall risk management structure and the success of its business.

We have developed this paper in which, as well as providing our views on what are the key elements of a fraud risk management framework, we outline a number of practical considerations to help companies consider fraud risk and what evidence would be useful to support those activities.

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