Fraud Risk Management

Fraud 

Fraud is any intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain.

Fraud can go unnoticed for years and can be very costly.  The perpetrator is often a valued and trusted employee, and can be situated at any level of the organization.  Outside economic and financial stresses can combine with internal uncertainties and changes to increase the risk that fraud will occur. 

While management is responsible for designing controls to prevent and detect fraud, it is everyone’s responsibility to be on the watch for red flags that could indicate potential fraudulent activities. 

  •  If anything comes to your attention that looks or feels suspicious, you should talk to your supervisor.  
  •  If you don’t feel comfortable going to your supervisor, utilize the confidential and anonymous Whistleblower Hotline to report the potential instance of fraud waste and abuse.  Make a Report
But please, don’t just look the other way.  That would violate the University’s values and ethical standards.
 

UC Berkeley's Fraud Risk Management Program

The purpose of UC Berkeley’s Fraud Risk Management Program (FRMP) is to reduce actual losses from fraudulent activities and to minimize the potential for fraud to occur in the future.  To achieve these objectives, the FRMP will, for example,  encourage and promote adherence to the UC values and the UC Standards of Ethical Conduct, identify and prioritize fraud risks, provide fraud awareness training, communicate how suspected instances of fraud may be reported, and facilitate appropriate action to respond to actual fraud.

The Compliance and Enterprise Risk Committee (CERC) is responsible for overseeing UC Berkeley’s FRMP.  Because CERC has an enterprise-wide focus, it will determine UC Berkeley’s fraud risk appetite and design the overall fraud risk management strategy.  A subcommittee of CERC will administer the program, ensuring that the strategy is implemented and that the functional owners of the fraud risk understand that it is their responsibility to design controls to prevent and detect fraudulent activities.

The chair of the CERC Fraud Risk Subcommittee  can be contacted via email at tmcknight@berkeley.edu.