PodChats for FutureCIO: Combating fraud risks in financial services in 2022

The Open Risk Manual defines fraud risk as unexpected financial, material or reputational loss as the result of fraudulent action of persons internal or external to the organization.Deloitte noted that according to the 2016 ‘Report to the Nations’ by the Association of Certified Fraud Examiners, professional fraud examiners estimate that a typical organisation loses 5% of its revenue to fraud. In a competitive market, that could be your profit margin!  The median losses from fraud in Asia-Pacific is US$245,000 – 104% more than that of the US. In today’s PodChats for FutureCIO, we speak to James Ellender, director with Futurum Research, on the topic of fraud risks in financial services.James, welcome to PodChats for FutureCIO.1.                   Define fraud risks in the context of the financial services – banking, finance and insurance – in Asia?2.                   Data culled by media suggests that fraud risks are on the rise. In your view where are fraud risks most prevalent and why?3.                   Within the financial services what are the three main catalysts for the rise in fraud cases?4.                   Would you attribute the rise in fraud cases a result of lack of (a) awareness; (b) capability including people and other resources; (c) technology; (d) lack of regulation; (f) indifference on the part of the financial services business leaders?5.                   What needs to happen from (a) regulator and (b) financial services businesses to better manage the risks (and hopefully contain the fraud cases) in 2022?6.                   What is your advice for leaders in financial services to get themselves ready for 2022?