Developing a Fraud Risk Management Program for Your Organisation
Training Introduction
Background
In an increasingly complex risk environment, fraud remains one of the most persistent and costly threats to organizations globally. Regulatory bodies, stakeholders, and the public expect organizations to implement robust frameworks to prevent, detect, and respond to fraud effectively.
A well-designed Fraud Risk Management Program (FRMP) is no longer optional—it's a critical element of good governance, ethical culture, and operational resilience.
This course provides practical guidance on designing, implementing, and maintaining a fraud risk management program that aligns with international best practices, such as the COSO/ACFE Fraud Risk Management Guide. It focuses on empowering professionals to take a structured, proactive approach to fraud risk.
Purpose of the Training
To equip professionals with the knowledge, tools, and frameworks to develop and implement an effective, organization-wide Fraud Risk Management Program tailored to their specific risks, size, industry, and regulatory context.
Learning Objectives
By the end of the course, participants will be able to:
- Understand the key components of a fraud risk management program
- Conduct fraud risk assessments and prioritize risk areas
- Design and implement preventive and detective controls
- Define clear roles and responsibilities in fraud governance
- Build a culture of integrity, transparency, and accountability
- Monitor, evaluate, and continuously improve the fraud risk program
Target Audience
- Internal auditors and risk managers
- Compliance and ethics officers
- Financial controllers and corporate governance professionals
- Legal advisors and senior management
- Professionals involved in enterprise risk or fraud prevention
Training Format
- Modules: 5 interactive and practical modules
- Delivery: In-person, virtual, or hybrid
- Methodology: Case studies, templates, maturity models, group work
- Framework Reference: COSO/ACFE Fraud Risk Management Guide, ISO 37001, ISO 31000
Course Content:
Module 1: Foundations of Fraud Risk Management
Objectives:
- Understand what a Fraud Risk Management Program (FRMP) is
- Learn the guiding principles and components of an FRMP
- Position fraud risk within the organization’s overall risk framework
Key Topics:
- Definition and purpose of FRMP
- Overview of COSO/ACFE Fraud Risk Management Framework
- Components: governance, risk assessment, control activities, detection, reporting, and monitoring
- Regulatory expectations and corporate governance alignment
- Benefits of a proactive fraud risk strategy
Activities:
- Group discussion: What fraud risks affect your industry?
- Review a sample fraud risk program against best practices
Module 2: Conducting a Fraud Risk Assessment
Objectives:
- Learn how to identify, assess, and prioritize fraud risks
- Understand inherent and residual fraud risks
- Establish ownership and accountability for fraud risk areas
Key Topics:
- Fraud risk categories: financial reporting, asset misappropriation, bribery & corruption, cyber fraud
- Risk identification tools: interviews, workshops, surveys, data analysis
- Assessing likelihood and impact
- Risk scoring and heat mapping
- Risk ownership and accountability models
Exercises:
- Fraud risk assessment template walkthrough
- Group activity: Identify and rank fraud risks in a case study organization
Module 3: Building Anti-Fraud Controls and Prevention Strategies
Objectives:
- Design effective fraud prevention and detection controls
- Strengthen internal control frameworks with a fraud lens
- Embed fraud awareness into policies, procedures, and culture
Key Topics:
- Preventive vs. detective controls
- Control design principles for fraud mitigation
- Segregation of duties, whistleblower mechanisms, conflict of interest policies
- Embedding fraud risk into onboarding, procurement, and financial processes
- Creating and enforcing a fraud policy and code of conduct
Tools & Exercises:
- Control gap analysis checklist
- Develop a fraud control matrix for a core process (e.g., procurement)
- Review sample fraud policies
Module 4: Detection, Investigation, and Reporting of Fraud Incidents
Objectives:
- Establish fraud detection mechanisms and incident response protocols
- Learn how to structure fraud investigations and manage outcomes
- Ensure ethical, legal, and consistent reporting
Key Topics:
- Key fraud detection tools: analytics, monitoring, audits, hotlines
- Designing detection metrics and dashboards
- Investigation procedures: planning, evidence collection, interviews
- Internal reporting protocols and escalation paths
- Regulatory reporting and legal considerations
- Lessons learned and post-fraud reviews
Activities:
- Design a fraud response workflow
- Case study: Walkthrough of a fraud incident from detection to resolution
- Develop a fraud reporting template
Module 5: Embedding, Monitoring, and Sustaining the Fraud Risk Program
Objectives:
- Embed fraud risk management into ongoing operations and culture
- Monitor program effectiveness and maturity
- Drive continuous improvement and leadership support
Key Topics:
- Embedding FRMP in ERM, internal audit, and compliance functions
- Fraud metrics, KPIs, and dashboards
- Training and awareness strategies
- Reporting to the board and audit committee
- Self-assessments and external evaluations
- Continuous improvement through fraud trend analysis
Exercises:
- Complete a fraud risk program maturity assessment
- Build an action plan to strengthen your organization’s FRMP
- Final group presentation: "Our Fraud Risk Management Roadmap"
Conclusion and Certification
- Summary of key lessons from all modules
- Final Q&A and knowledge check
- Action planning and next steps
- Certificate of Completion awarded
Optional Training Materials
- Fraud Risk Management Framework Template
- Fraud Risk Assessment Toolkit (Excel or PDF)
- Sample Fraud Control Library
- Incident Response Playbook
- Board Reporting Template for Fraud Oversight
- Fraud Risk Program Maturity Model (Benchmarking Tool)
