Fraud and Risk Management System in Banking Sector
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Fraud and Risk Management System in Banking Sector Course
Introduction:
Fraud and risk management are of utmost importance in any organization. In the banking sector, having well-defined protocols, systems, technologies, and practices for fraud and risk management is even more critical. It is essential that every employee is familiar with and adheres to these procedures.
In the banking sector, the primary objective of risk management is to prevent financial losses. Fraud and cheating often occur in areas where internal controls are insufficient, making strong controls and regular audits necessary.
This training course is designed to equip you with the knowledge and skills needed to establish, implement, and maintain a robust and effective fraud and risk management system within your organization. By participating in this course, you will gain the necessary insights to identify early warning signals and proactively prevent challenging incidents. This, in turn, will enhance your organization's credibility and enable you to assume critical roles that foster growth.
By the end of the course, you will have a comprehensive understanding of fraud and risk management principles, as well as practical strategies for their implementation. You will be empowered to build a culture of integrity, implement strong internal controls, and effectively respond to emerging risks. This course will enhance your professional capabilities and contribute to the overall success and resilience of your organization in combating fraud and managing risks effectively.
Course Objectives:
At the end of this Fraud and Risk Management System in Banking Sector Course, learners will be able to do:
- understand and be aware of fraud and risks that could cause great harm and losses to financial organizations
- be capable of handling advanced technological systems to track and record information and predict fraud or other risks to the organization
- define robust processes to be followed to not leave any gap in operations that could promote fraud and other activities
- devise, document and implement organization-wide protocols and guidelines for operations to mitigate any chances and minimize avenues for fraudulent activities, thus building a strong fraud and risk management system
- spread awareness through training of other professionals on fraud and risk management
- take timely and appropriate decisions in case a fraudulent activity takes place in one’s organization, to prevent damage to property, employee safety, and welfare, customer satisfaction, or otherwise
- confidently accept higher roles and responsibilities requiring close supervision of end-to-end operations to prevent fraud in one’s organization, therefore accepting numerous opportunities for career progression
- contribute to organizational credibility and development through successful and stringent fraud management systems
- thoroughly understand fraud and other risks in the banking sector to handle related responsibilities in any organization within the sector, enabling a greater scope for growth
Who Should Attend?
This Fraud and Risk Management System in Banking Sector Course is ideal for:
- Managers and heads in organizations in the banking sector who need to understand fraud management well
- Bankers and other executives involved in any transactional or operational function in banks
- Legal and financial advisors who can help combat fraud or provide expert advice in the event of fraud
- Potential shareholders who should understand the prospect of a financial institution
- Auditors who need to ensure adherence to required guidelines and universal standards
- Any other professional interested in understanding fraud and risk management in the banking sector in detail
Course Outlines:
Module 1 – Types of Banking Risks
- Credit risk
- Market risk
- Operational risk
- Liquidity risk
- Business risk
- Reputational risk
- Systemic risk
- Moral hazard
Module 2 – Broad Categories of Attacks or Fraud
- Session stealing
- Man-in-the-middle fraud
- Key loggers
- Phishing
Module 3 – Principles of Effective Fraud Risk Management
- Fraud risk governance
- Fraud risk assessment
- Fraud prevention
- Fraud detection
- Monitoring and reporting
Module 4 – Types of Fraud Risk Management
- Preventive fraud risk management
- Detective fraud risk management
- Responsive fraud risk management
Module 5 – Essential Steps in Fraud Risk Assessment
- Plan
- Identify
- Assess
- Prioritize
- Communicate
- Implement
- Monitor
Module 6 – Factors Providing Opportunities for Fraud
- Inability to judge performance quality
- Failure to discipline fraud perpetrators
- Lack of access to information
- Ignorance
- Apathy
- Incapacity
- Lack of audit trails
Module 7 – Fraud Prevention Mechanisms in the Banking Sector
- Multi-factor authentication
- Transaction monitoring
- Employing dual or triple controls
- Raising fraud awareness
- Reconciling business/corporate accounts daily
Module 8 – Analytical Techniques to Detect Fraud
- Classification
- Statistical parameters calculation
- Numbers stratification
- Joining random diverse sources
- Duplicate testing
- Gap testing
- Entry date validations
- Numeric values summation
Module 9 – Benefits of a Good Fraud Management System
- High fraud detection rates