Key points from the guidance include:
➡️ Clear Risk Definition: Firms are expected to articulate fraud risks by identifying the potential perpetrators, methods, and impacts rather than relying on generic risk statements.
➡️ Control Effectiveness Focus: Organisations should assess whether preventative and detective controls operate as intended, identify weaknesses, and understand residual risk levels.
➡️ Named Risk Ownership: Each fraud risk should have a clearly assigned owner responsible for managing, escalating or accepting the risk within agreed tolerances.
➡️ Dynamic Assessments: Fraud risk assessments should be reviewed regularly and refreshed following business changes, control failures or emerging threat developments.
✅ Firms should ensure their fraud risk assessments are robust, clearly owned, regularly reviewed, and aligned to evolving financial crime risks, leveraging the best practices highlighted in the guidance.
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