Internal Fraud

Internal fraud refers to dishonest actions taken by employees or insiders within an organization to deceive the company or its stakeholders for personal gain. This can include stealing funds, manipulating financial records, or misusing confidential information. In operational risk management, it involves identifying, assessing, and mitigating the risks associated with such fraudulent activities to protect the organization’s assets and reputation. Effective controls, monitoring systems, and a strong ethical culture are essential to prevent and detect internal fraud, ensuring the organization operates effectively and maintains trust among its stakeholders.