Why a Risk-Based Approach to Fraud Management is important:
Achieve Fraud Management with LogicManager
Here’s more of what you can expect with LogicManager’s Fraud Management solution package:
- LogicManager provides a number of compliance readiness assessment templates, including the IIA Fraud Checklist, to help you benchmark where your fraud management program is today and see what steps can be taken to further strengthen it for the future.
- There are many stakeholders in the fraud management process, including risk, compliance and finance. By bringing your fraud management program into one centralized system like LogicManager, you can easily get all of those stakeholders on the same page.
- LogicManager is built on a robust taxonomy framework so that you can leverage all of the work done by other teams and never duplicate your work.
- Leverage a variety of user-friendly and out-of-the-box anonymous incident forms that are also fully customizable to ask only the questions that satisfy your most pressing inquiries.
- Create automated workflows to ensure quick and efficient remediation of incidents of fraud.
- Leverage our reporting tools to aggregate your information and identify and share trends in data.
What is Fraud Management?
It’s no question that being a victim of fraud can feel like an incredible violation. Your business works hard to earn money, and it’s only fair that you know where that money goes. When perpetrators of fraud scam a company out of their hard earned money, they rob them of their right to decide where it ends up. This can be calamitous to any business.
So how can you prevent fraud at your organization? The only way is by taking a risk-based approach and implementing a robust fraud management program. LogicManager’s Fraud Management solution package will help you identify fraud exposure, detect gaps in processes and procedures, recommend remediation steps and facilitate incident response.
Risks
With the use of many technologies, integrated applications, and amount of sensitive data stored online, fraud risk is an ever-increasing threat. Fraudulent activity can refer to internal cases, such as when there is corruption perpetrated by employees. This may include theft, payroll fraud, false invoicing or financial statements. External fraud threats, ones that are characterized by abusive practices by vendors, suppliers and other third parties, can include the same instances as internal fraud, as well as loan fraud, phishing emails, data hacking and more.
Most cases of fraud can be detected as a risk before it materializes. But if you don’t have a formalized fraud management program in place to issue these controls and processes, you’re more exposed to weaknesses. An organization’s revenue is directly tied to a strong fraud management program; any weaknesses in this process has a direct impact on a businesses ability to grow revenue. In addition to the loss of assets, a poor fraud management process opens up an organization to reputational damage as customers and investors alike will not want to trust a business that is continually making headlines for poor fraud prevention.
