Fraud HSBC Example Free

Published: 2022-12-23
Fraud HSBC Example Free
Type of paper:  Essay
Categories:  Banking Business law Business management Financial analysis
Pages: 2
Wordcount: 513 words
5 min read

Fraud Risk Schemes

Strengthening internal security control to prevent any form of cybercrime. It has improved its security and controls to protect the customers when transacting digitally. Third-Party risk management is enhanced to ensure that the risk assessment is consistent. for example the bank has come up with the scheme policy framework

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The likelihood of the risks occurring is very high. Therefore, the bank is always alert and has put up mechanisms of handling any risks in case they occur. For the examples include: the bank has developed scenarios where I can happen.


The fraud risk schemes are essential because they enable the bank to be always prepared so that it can mitigate any risks which might arise. The risk schemes increase the preparedness of the company against the risks posed by both internal and external fraudsters. For example, a client can protect his money through these mechanisms.

People and Department

Examples of the departments include the retail banking, corporate banking, customer service, credit, and microfinance departments

Existing Anti-Fraud Control

The financial institution ensures it understands its customers well and has accurate and up to date information about them. Then the institution ensures that the customers' information is well insulated so that it cannot be accessed by external and internal fraudsters who have ill motives. There is also constant upgrading and monitoring of all the activities of the bank. The bank has installed software to detect any unauthorized access. Examples of the control mechanisms include the establishment of anti-fraud laws.

Control Effectiveness

The directors conduct control and effectiveness of the systems through regular and constant review of the effectiveness of the systems (Dionne, 2019). The bank has well-articulated anti-money laundering and anti-bribery policies which have made the institution reduce fraud cases to the minimum. For instance, the bank has policies fraud control.

Residual Risk

Since the residual risk is unknown, the financial institution decided to it by purchasing an insurance cover so that the insurance company can take over the risk. Examples include insuring the bank on residual risks.

Fraud Risk

Response the company plans, therefore, making it easy for the bank to deal with any potential risks before they occur. The bank has also put up mechanisms of identifying risks before they occur so that it can react quickly and prevent them. Examples include the establishment of policies on fraud risk response.

Fraud Risk Assessment

Year Amount For Covering Risks In Dollars
2017 871.3
2018 865.5
2019 895.5

Pressure is a situation where somebody has a financial problem but instead of resolving it legitimately, violates the law to achieve their means. The fear to be held accountable may trigger an individual to engage in unlawful activities.

Opportunity is where one sees the possibility of obtaining money fraudulently without being caught and utilizes that chance. The financial gain is not lawful and can easily lead an individual to prison or some fines.

The rationale is whereby the fraudsters are first-time offenders and they appear as good and honest people who are caught in bad circumstances.


Dionne, G. (2019). Corporate Risk Management: Theory and Applications. S.L.: John Wiley. 871.3865.5

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