The New Commonwealth Fraud Risk Profile

We have recently completed a project to create a Commonwealth Fraud Risk Profile. To develop this Profile, we gathered and analysed enterprise-level fraud risk data from across 15 Australian Government entities. This enabled the Centre to analyse and map common elements of fraud, such as risk categories, enablers and mitigations across the Australian Government.

The Profile is like a fraud risk register for the Australian Government and provides a clear picture of fraud risks across the Australian Government, including common categories of risks and mitigations. This is something that has never existed before, and it will unlock new opportunities for Australian Government entities to:

• collectively mitigate fraud risks and respond to emerging threats and capability gaps
• prioritise existing resources and capability through better visibility and understanding of the fraud risks, including shared risks and emerging threats
• create more consistent recording and reporting of fraud risk across the Australian Government through the use of common reporting categories
• help improve the evidence base of the extent and impacts of fraud. Examples of how you can use the profile

Here are a couple of ways Australian Government entities might benefit from the Profile:

1. Reference point for Enterprise Fraud Risk Assessments
   Built on analysis of enterprise fraud risk data from across 15 Australian Government entities, the profile provides an excellent starting point for those looking to build their enterprise fraud risk assessments using a top-down approach. This can then support them to undertake Strategic Fraud Risk Profiling and prioritise detailed fraud risk assessments in their highest risk functions and operations. The results of these activities can then further inform and validate the enterprise fraud risk assessment.
2. More consistent reporting categories
   One of the limitations the Centre encountered during this project was the divergent approaches used by entities to capture and report on fraud risks at the enterprise level. By referencing the Profile, entities can ensure their approaches to recording and reporting fraud risks are consistent with other entities across the Australian Government. This more consistent reporting will help the Commonwealth Fraud Prevention Centre improve the evidence base of the extent and impacts of fraud.

If you work for an Australian Government entity you can request a copy of the Profile by contacting us.

Author: Nandini Naicker