Question

Determine specific damages that are being incurred by individuals, competitors and the economy at large as a result of poor fraud risk assessments by municipal organisations?

Answer 1

Special damages incurred by individuals,competitors and economy:

Individuals :

Corruption

Corruption is operationally defined as the misuse of entrusted power for private gain There are various types of corruption, and could include such things as taking bribes to award contract , embezzlement, and aiding and abetting vendors to commit fraud.

Competitors

Information Technology and Fraud Risk

Organizations rely on IT to conduct business, communicate, and process financial information. A poorly designed or inadequately controlled IT environment can expose an organization to fraud. Today’s computer systems, linked by national and global networks, face an ongoing threat of cyber fraud and a variety of threats that can result in significant financial and information losses. IT is an important component of any risk assessment, especially when considering fraud risks. IT risks include threats to data integrity, threats from hackers to system security, and theft of financial and sensitive information. Whether in the form of hacking, of data, viruses, or unauthorized access to data, IT fraud risks can affect everyone. In fact, IT can be used by people intent on committing fraud in any of the three general fraud risk areas.

Economy:

Regulatory and Legal Misconduct

Regulatory and legal misconduct includes a wide range of risks, such as conflicts of interest, contract terms,and state and federal regulations. Depending on the particular organisation and the nature of its business, some or all of these risks may be applicable and should be considered in the risk assessment process.

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