Fraud & Risk

Conduct risk is an understated part of risk management. It sits alongside financial risk management but has the potential to undermine business strategy and financial governance much more quickly than embezzlement or financial fraud. As we have seen from recent scandals in a number of sectors, people knowingly – or are pressured by the organisation’s business imperatives – to take calculated risks on the basis of going undetected.

Our approach is two-fold:  carry out a Conduct Risk Assessment; and conduct Fraud and Risk Awareness Training.

Benefits of a Conduct Risk Assessment:

  • Development of conduct risk research inventory to guide staff
  • Development of a classification system for actual and potential conduct risks encountered by staff by type and function/work
  • Development of complementary conduct risk metrics for inclusion in ongoing ethics survey
  • Pilot inventory to provide a baseline snapshot of existing conduct risks by business unit and/or function
  • Gap analysis of existing conduct risk and ethics survey outputs
  • Map of risk likelihood versus consequence to identify high, medium and low conduct risks
  • Recommendations on ways of eliminating ‘gaps’ between behaviour (ethics) related policies and their operational implementation
  • Revision of risk framework and recommendations for assessing risk appetite and operational/ cultural risks

Method: Conduct Risk Assessment

Managing Values starts from the perspective that risk outages from poor behaviour are typically the consequence of:

  • Poor cultural design
  • poor role modelling from key managers;
  • poor management of key stakeholder’s expectations;
  • dysfunctional individual and group dynamics;
  • perceptions and misconceptions of organisational and market pressures;
  • individuals’ predispositions to short term thinking;
  • individual and group failure to engage and accept accountability for the negative impacts of their actions on others


A Conduct Risk Assessment explores and surfaces these issues and establishes a risk framework with which to develop a ‘risk appetite’ profile, a risk dashboard that specifies and prioritises areas of greatest conduct risk, and a conduct risk strategy that feeds into the Fraud and Risk Control and Management Plan.

Fraud and risk awareness training

Managing Values will design and deliver fraud and risk training workshops. We liaise with you, the client, to design the program to include up-to-date materials that cover contemporary challenges and fraud risks and will develop scenarios to reflect the contextual pressures regulatory and enforcement staff face. These dilemmas and scenarios will build on material supplied to us by your people and be presented in a challenging format so that participants understand the ‘why’ behind policies and Codes and the risks associated with inappropriate behaviours.

The process – experientially driven and highly interactive – is our preferred and proven approach and is also widely recognised as best practice in facilitated learning.

Why Us

Three years ago Managing Values was asked to assist a global financial services company in measuring conduct risk. We had significant input into a Risk Culture Model, which included a global scan of risk reporting at board level. From there we conducted our first Conduct Risk Survey in one of their markets.  We have since conducted similar surveys in a number of organisations in Australia and have designed and rolled out Fraud and Risk Awareness Training with several organisations in the private and government sectors.

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