Fraud Risk Management Model: A Content Analysis Approach

Abstract

The objective of this study is to explore the whole process of fraud risk management strategies that should be implemented by the organizations. Secondly, this study discusses the governance issues that arise at each stage of the process. For the purpose of this study, a content analysis of previous literatures is used as a technique for gathering data. This process usually involves codifying qualitative and quantitative information into pre-defined categories in order to derive patterns in the presentation and reporting of information. Based on our content analysis, we found that the fraud risk management process should be made of at least five stages which are inculcating the culture of managing risks in an organization, identifying the risks, evaluating the risks, determining preventive actions and implementing and reviewing stages. Our extended analysis of the fraud risk management process finds that a lot of governance issues arise in the fraud risk management process that should be solved by regulators and companies in order to ensure that fraud risk management process is embedded as corporate culture, not merely as a process. Among them are how to create the risk culture in an organization and whether auditors and risk management committees identify risks from each available source.

The Role of Supervision: Is it Still Optimal in the Assistant Lecturer Corps?

“…Risk is defined by Eugene (1998) as the possibility of the occurrence of undesirable events that can give rise to uncertainty. Meanwhile, according to Marzuki et al, (2020), risk is the possibility that an undesirable event will occur. The existence of risk makes the organization carry out risk management, one of which is through proactive and periodic monitoring of risks related to organizational goals.…”

Manajemen Risiko Kecurangan Pada Perusahaan Perbankan Di Indonesia

“…Selaras dengan itu, Institut Akuntan Publik Indonesia (IAPI) dalam SA 240 mengenai tanggung jawab auditor terkait kecurangan dalam suatu audit atas laporan keuangan menyebutkan kecurangan (fraud) sebagai suatu tindakan yang disengaja oleh individu atau lebih yang melibatkan penggunaan tipu muslihat untuk memperoleh keuntungan secara tidak adil atau melanggar hukum (IAPI, 2014). Selanjutnya, Marzuki et al (2020) menyatakan kecurangan adalah tindakan yang disengaja dilakukan untuk mendapatkan keuntungan yang tidak adil atau melanggar hukum. Sehingga dapat disimpulkan kecurangan (fraud) merupakan kegiatan yang melanggar hukum dan berbasis kepada penipuan yang dilakukan oleh individu maupun berkelompok untuk mendapatkan keuntungan.…”

Does Good Corporate Governance Mediate Risk Management Implementation and Financial Performance of Indonesian Commercial Banks?

“…Jantadej and Wattanatorn [12] measured GCG as the number of board members-board size, the number of the board meeting, and the percentage of non-executive on the audit committee. Siagian [13] measured GCG as the company's remuneration system. Furthermore, Buckby, Gallery, and Ma [14] have criticized that the inadequate implementation of corporate governance cannot anticipate the potential hazards [14].…”

“…Many studies explored the relationship between GCG, risk management, and FP. Risk management is as an independent variable [12], [13], [18], [19], [20], [21]; and as moderating variable [22], [23], [24], [25], [26]. A rare study examined the role of GCG in mediating the effect of risk management on FP.…”