What is Fraud Risk (Receivables)?

Definition

Fraud Risk (Receivables) refers to the potential for fraudulent activities within the accounts receivable process that could lead to financial loss or misstatement. It involves assessing vulnerabilities in transaction processing, cash collection, and receivable management.

Effective management of fraud risk in receivables incorporates tools such as Fraud Risk Assessment, Fraud Risk Mitigation, and Fraud Risk Reporting Framework to continuously monitor and reduce exposure. Leveraging Fraud Risk Heat Map and Fraud Risk Continuous Improvement ensures that emerging threats are identified and addressed proactively. Integration with Foreign Exchange Risk (Receivables View) and Fraud Risk Transformation further strengthens the control environment, supporting both operational and compliance objectives.

Summary

Fraud Risk (Receivables) focuses on identifying, assessing, and mitigating fraudulent activities in accounts receivable, enhancing financial integrity and safeguarding cash flow processes.