Mitigating COVID 19 Fraud Risk – Navigating through the new normalCFO Services / Debt Restructuring / Fund Management / Strategy FormulationBy Profit Board
COVID-19 has caused unprecedented change for financial institutions across many aspects of their organizations, including the control environment. Organizations should not overlook their ability to identify, mitigate, and respond to a change in fraud risks as a result of this disruption. Changes to an entity’s risk, control, and defense models should also incorporate an assessment of fraud risks, fraud risk factors, and fraud schemes as part of changes to the design or effectiveness of an internal control over a variety of functional areas.
Normal business scenarios focus on balancing between a streamline customer success and detecting fraud. Whereas, crisis scenarios, intensive focus is on reductions of friction, combating risks and ensuring optimum allocation of resources. When crisis is the new normal, survival takes up the mind-space, resulting in vulnerable fraud checks. However, this is the time to buckle up and reinstate your defense mechanisms in place to mitigate fraud risk and consequent resource erosion.
This is a 5 pointer road map for an organization’s successful fraud risk management program.
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