An organisation of member firms around India devoted to client service excellence.
Member firms offer wide range of services in the field of risk management.
Fraud Risk Management
All organizations are subject to fraud risks. Large frauds have led to the downfall of entire
organizations, massive investment losses, significant legal costs, incarceration of key individuals,
and erosion of confidence in the market. Frauds by key executives has negatively impacted the
reputations, brands and images of many organizations around the globe. Regulations such as the
U.S. Foreign Corrupt Practices Act of 1977 (FCPA), the 1997 Organization for Economic
Cooperation and Development Anti-Bribery Convention, the U.S. Sarbanes-Oxley Act of 2002,
the U.S. Federal Sentencing Guidelines of 2005 and similar legislation throughout the world
have increased management’s responsibility for fraud risk management.
As part of an organization’s governance structure, a fraud risk management program should be in
place including a written policy (or policies) to convey the expectations of the board of directors
and senior management regarding managing fraud risk to all the employees of the organization.
Fraud risk exposure should be assessed periodically by the organization to identify specific
potential schemes and events that the organization needs to mitigate. As organizations increase
their focus on risk, they should take the opportunity to consider, enact and improve measures to
detect, deter and prevent fraud.
Building an effective fraud risk management program requires solid understanding of how and
why fraud is perpetrated.
Today about 5% of revenue of a typical organization lost to fraud each year and the estimated
global annual fraud loss is $3.7 trillion.
Fraud Response Management Plan -
Risk Free assists organizations in setting up an effective Fraud Response Management Program.
The fraud response program is to protect the organization from the economic, reputational and
legal risks associated with the frauds. Organizations that implement Risk Free SOPs and ensure
that they are periodically updated will be able to allocate efforts on process improvements and
strategic objectives which will deliver long term growth.
We assist our clients in closing the gaps by conducting a fraud risk assessment across their
operations, and updating and refining relevant policies and procedures as appropriate, including
the drafting of a comprehensive fraud response plan. In addition we provide training and
communication support for the new framework and program. This will assist the business to
demonstrate to key stakeholders an increased focus on, and proactive approach to, fraud risk
management and assisted the Board in their ‘tone from the top’ message.
Risk Free also conducts workshops with a selection of management and staff across their various
departments in order to raise awareness and identify fraud risks in the company’s day to day operations. Our onsite work will increase the profile and status of anti-fraud throughout the
organization as well as the industries and sectors.
Risk Free assists its clients in the following:
1 - Establishing prevention techniques to avoid potential key fraud risk events where feasible
to mitigate possible impacts on the organization
2 - Establishing detection techniques to uncover fraud events when preventive measures fail
or unmitigated risks are realized
3 - A process to identify potential fraud, launch investigation, ensure potential fraud is
addressed appropriately and timely identified, assessing and managing fraud risks from
all sources, develop a system of internal controls to address the entity’s fraud risks,
address and respond to any identified instances of fraud, establish an anti-fraud culture
and promoting fraud awareness throughout the organization and much more
Preparing extensive and intensive SOPs, Manuals and Checklists -
Standard operating procedures might evoke a yawn from the majority of the employees. But if
your firm is on any sort of growth or expansion curve, SOPs could be a critical in your ability to
navigate the challenges that growth brings especially if your firm’s pace of growth is accelerated.
SOPs establish business practices and processes and they also communicate responsibility and
ensure consistency which are the two key factors for success in all companies, especially those
managing growth. Organizational leaders agree that well run businesses need clearly documented
Risk Free prepares SOPs, Manuals, Checklists, Policies, processes and controls and provide
recommendations and mitigation measures. Risk Free will assist you to develop the Anti fraud
program. Each and every business has its own different SOPs, every businessman has his/her
own way of leadership style, and every industry has its own best practices. Developing SOPs is
essential for the growth and sustainability of the organization. SOPs are the documents that help
organizations to make the best practices as a part of organizational culture in performing the
various processes, functions and activities. The SOPs will ensure that all fraud risks are
considered, systems tested and reported as part of the audit program.
They’re essential to the employee performance evaluation process. How can you hold
employees accountable for tasks and processes that aren’t documented? Without SOPs, job
performance often becomes a matter of opinion. With SOPs, managers can clearly identify
employee successes and communicate deficiencies during quarterly or annual performance
reviews. When it comes time to discipline or terminate an employee, clearly defined tasks, as
opposed to broad job descriptions, give managers the ability to justify their disciplinary or
Documented procedures help you to streamline the operations and keep an eye on the quality of
your products by reducing errors, minimizing variations or even duplication of service.
Documented procedures help to streamline internal and external audits as well. They provide
continuity in the event of employee loss. SOPs will make it easier for someone to step into the
void and get up to speed more quickly. The company is also in compliance with national and
international standards, laws, rules and regulations.
Advantages and Benefits of SOPs, Manuals and Checklists
• Awareness of policies and procedures, organizational culture and code of conduct
• Employees understand organizational expectations and obligations, benefits of preventing
• It assists the employees to uncover frauds, report fraud and seek assistance
• It establishes and documents fraud investigation protocols
• Establishes roles, responsibilities and accountability for fraud risk management
• Prevent frauds and avoid the related costs
• Facilitate early detection of fraud events to help mitigate the effects
• Augments the business brand and protects reputation
• Reduces the risk of non compliance with laws and regulations and protect the business
• Well defined steps for employees to perform their work
• Standardization of activities irrespective of who is performing
• A platform for continuous improvement
• Lists the tasks which are essential for fraud prevention
• Reduces errors in every department
• Protect the organization in areas of hidden liabilities and legal matters
• Helps in auditing and inspection by a regulatory body or an external partner
• They consist of checklists that are easy for employees to follow and greatly reduce the
chances of mistakes
• Provide consistency and quality control
• Help increase productivity
• Ensures that all of your employees understand the processes, policies, and procedures
associated with their jobs
• SOPs are also helpful when developing employee review or development plans
• Meet legal requirements. Depending on your industry, you may be required to have
written SOPs that protect your employees and/or customers and ensure that you won’t be
held legally responsible if something goes wrong