Definition
Fraud Risk Assessment is a structured process to identify, assess, and prioritize fraud risks across an organization’s processes and systems.
Context
Fraud Risk Assessment is a core component of fraud risk management and part of broader compliance and governance frameworks. It systematically evaluates risk factors such as incentives, opportunities, and rationalization (e.g. as described in the fraud triangle), as well as weaknesses in internal controls.
Meaning
Fraud Risk Assessment provides the foundation for effective prevention and control measures by systematically identifying, assessing, and prioritizing fraud risks.
Example
A company assesses procurement processes and identifies weak vendor due diligence as a key fraud risk.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Fraud Risk Assessment", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/fraud-risk-assessment/, accessed April 18, 2026.