Who should ideally sponsor a fraud risk assessment?

The ideal sponsor of a fraud risk assessment should be a senior leader who is respected by employees. This is because having a senior leader in this role helps to signal the importance of the fraud risk assessment to the entire organization. Senior leaders typically have the authority to allocate resources, implement new policies, and ensure that the initiative receives the necessary attention and support across all levels of the organization.

Having a respected senior leader at the helm fosters an environment where employees feel more comfortable discussing potential fraud risks without fear of reprimand. It can also contribute to a culture of transparency and accountability, which is critical in identifying and mitigating fraud risks effectively. When employees see that leadership is genuinely invested in minimizing fraud risk, they are more likely to engage with the process and report any concerns they may have.

Other choices, such as having an entry-level employee or a middle management staff member sponsor the assessment, may lack the necessary authority or influence to drive organizational-wide changes and encourage employee participation. An external consultant can provide valuable expertise and an objective perspective, but they typically lack the internal authority or respect that comes with a senior leader's role. Therefore, the most effective sponsorship comes from a senior leader who can advocate for and prioritize the fraud risk assessment within the organization.