When it comes to preventing fraud, it is important to know that no system can be devised to be 100% protected. However, there are many measures that can be put into place to reduce or mitigate its impact. After identifying the potential areas that would be vulnerable to fraud from the FRA, the next logical step is to put measures in place that address those weaknesses to lessen the probability of fraudulent activity occurring. Two concepts come into play here: risk and materiality; that is the risk of the company actually experiencing a fraud and the amount of loss if such a fraud occurs (materiality).
