What primary goal does a fraud risk assessment aim to achieve?

A fraud risk assessment primarily aims to proactively identify vulnerabilities to fraud within an organization. This process involves evaluating various business operations, internal controls, and potential areas where fraud might occur. By recognizing these vulnerabilities early on, an organization can implement targeted measures to mitigate risks, bolster defenses, and establish a culture of integrity that discourages fraudulent behavior.

Understanding and addressing fraud risks not only helps protect assets but also strengthens the organization's overall governance framework and enhances stakeholder trust. This proactive stance is essential for maintaining robust operational integrity and ensuring compliance with relevant laws and regulations.