A strategic approach to fraud risk management for government agencies
Fraud is a huge issue for the public sector. According to the Association of Certified Fraud Examiners, in 2020, government and public administration entities ranked second among the 15 industries most impacted by fraud. Governmental agencies should move beyond compliance to combat fraud strategically, not opportunistically.
An effective fraud risk management (FRM) program will help you understand where you are vulnerable and how to best control your fraud exposure. It will provide a backbone for decision making and help ensure the appropriate application of the right resources to prevent fraud, waste and abuse.
Too many agencies handle fraud reactively, waiting to respond to findings from the GAO or Inspectors General. Or FRM is only pursued as a compliance activity, so the agency misses out on the larger benefits of a strategic approach. Agencies should treat FRM like any other strategic endeavor by taking ample time to define their vision and goals—and the plan for achieving them.
How can a FRM program help your agency? It can:
- Serve as a basis for decision making and prioritization
- Help you target resources on the areas of highest priority and impact
- Provide a map of where your FRM efforts currently stand and where your best opportunities or gaps exist
- Help you move beyond compliance to address fraud risk strategically
- Approach FRM proactively instead of following and expansive pay-and-chase model
“From theory to practice: Strategic Plans Accelerate Fraud Risk Management” was published in the Winter 2021 edition of Journal of Government Financial Management and examines how your agency can implement a sound FRM program.
Download the article to learn more