Fraud and Risk Management System in Banking Sector Course

Course Overview:

The primary objective of this module is to enable the participants, who are banking professionals, to design, implement and oversee a Fraud and Risk Management Framework across financial organizations. Participants will appreciate that there are different forms of risk: financial risks (credit), market risks and operational risks and appreciate theft by phishing, session stealing and man-in-the-middle techniques of getting into computer systems fraudulently.

The emphasis of the course is on fraud risk management strategies and measures including preventing them, recognizing them when they occur and reacting to threats, and also indicates important procedures to survey for fraud risks.

Areas of focus include the measures of fraud prevention such as the dual-factor authentication and transaction monitoring, and the analytical aspects of thumbprints on items such as pictures, skies and others in the quest to detect fraud. 

This specific training program is right for managers in banking, audit, legal departments, and all experts engaged in the operational and transaction segments of banks so that a sound fraud management system that guarantees the safety of the organization’s and the customers’ interest is established.

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
• Protection of customers from fraud
• Protection of banks’ market share
• Monitoring of user behavior
• Case management tools
• Threat assessments
• Anti-fraud measures

see more: Fraud Prevention and Financial Integrity Course