Risk management as a field (or component of internal auditing) has ground rules where it can determine the key areas of how a certain organization should function and what are the areas where such org may fail. At its basic form, it will Risk managers are assessing inflows and outflows of cash and the policies behind those functions. They will also see how the management process is being performed and potential conflicts of interest issues.
Setting up an internal audit function that regularly assess the risk landscape of any EA org the soonest can help avert future fraud. As I have mentioned in my other posts, fraud is very hard to detect especially when collusion is in play—yet I again strongly point out that this is the best practice in traditional systems of conducting transactions when large sums of money are involved. Not following best practices will always leave possibilities for gaps to where fraudulent actors may exploit.
Hi Trish,
Risk management as a field (or component of internal auditing) has ground rules where it can determine the key areas of how a certain organization should function and what are the areas where such org may fail. At its basic form, it will Risk managers are assessing inflows and outflows of cash and the policies behind those functions. They will also see how the management process is being performed and potential conflicts of interest issues.
Setting up an internal audit function that regularly assess the risk landscape of any EA org the soonest can help avert future fraud. As I have mentioned in my other posts, fraud is very hard to detect especially when collusion is in play—yet I again strongly point out that this is the best practice in traditional systems of conducting transactions when large sums of money are involved. Not following best practices will always leave possibilities for gaps to where fraudulent actors may exploit.
All the best,
Miguel