fraud risk

Fraud risk refers to the possibility that someone might intentionally deceive or manipulate, often for financial gain, which can harm a business or individual. It involves dishonest actions like misrepresenting information, stealing assets, or falsifying records. Organizations assess fraud risk to prevent, detect, and respond to such misconduct, protecting their resources, reputation, and trustworthiness. Managing this risk includes implementing controls, monitoring activities, and fostering an ethical environment to reduce the likelihood of fraud occurring.