Fraud risk assessment
A process-by-process map of where fraud could happen, how likely it is and how strong each control really is, with a prioritised plan to close the gaps.
A process-by-process map of fraud scenarios, their likelihood and the strength of each control.
Most frauds exploit a known weakness: a vendor master anyone can edit, a discount nobody reviews, a stock count that is never a surprise. A fraud risk assessment finds those weaknesses before someone uses them.
We walk through each process with the people who run it and map the fraud scenarios that could occur, from procurement kickbacks and fictitious vendors to channel-scheme leakage and ghost employees. Each scenario is rated for likelihood and impact, and the controls meant to stop it are mapped and assessed.
The result is a fraud risk register and heat map that the audit committee can use, with a remediation plan ranked by priority. It also gives internal audit a fraud-focused plan for the year.
You need to know where fraud could happen across your processes, and how strong the controls really are.
Signs we see most often
- 01The audit committee has asked for a fraud risk assessment.
- 02The business has grown or changed faster than its controls.
- 03A recent fraud raised the question of what else could happen.
- 04You are entering a new market, channel or business line.
- 05Regulators or auditors expect a documented fraud risk process.
Scoped in writing, run by one accountable team.
Every engagement starts with agreed questions, a reporting line and a confidentiality protocol. The steps below are how this service usually runs; we adapt them to your matter.
- 01PlanAgree the processes, units and entities in scope.
- 02Walk throughMap each process with its owners, including system and manual steps.
- 03IdentifyApply a fraud-scenario library to each process and add scenarios specific to your business.
- 04RateRate the inherent likelihood and impact of each scenario.
- 05Map controlsIdentify the controls for each scenario and assess their design.
- 06PrioritiseProduce a residual-risk heat map and a ranked remediation plan.
A fraud risk register and heat map, with a prioritised remediation plan.
- A fraud risk register by process
- A fraud risk heat map for the audit committee
- Control mapping and gap analysis
- A prioritised remediation plan with owners
- A fraud-focused internal audit plan
The law and frameworks this work is aligned to
- Aligned to the COSO/ACFE Fraud Risk Management Guide
- COSO Internal Control: Integrated Framework (2013), principle 8 on fraud risk
- Aligned to ISO 31000 risk management
- Companies Act, 2013 s.134(3)(n) and SEBI LODR Reg. 21 on risk management
- RBI Fraud Risk Management Directions, 2026, for regulated entities
References show the standard the work is built to. They do not imply accreditation or endorsement by the bodies that publish them.
This is a summary of the service. For a deeper understanding of how it would work for your organisation, please reach out to us.
Talk to a BDI partnerWhere this service meets BDI's technology.
The platforms below record, monitor or act on the work this service produces.
Questions clients ask before we start.
How is this different from an internal audit?
An internal audit tests whether controls operated over a period. A fraud risk assessment asks how someone could defeat them and where the business is most exposed. The two work together: the assessment tells internal audit where to look.
Do you need access to our systems?
We need process walkthroughs, policies and, ideally, data extracts. Data shows whether a scenario is only theoretical or already happening.
How often should it be repeated?
Most organisations refresh it every year, and after a significant change such as an acquisition, a new system or a fraud.