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Fraud is defined as any intentional act committed to secure an unfair or unlawful gain. So, before we start the discussion, one key point to note is that fraud is INTENTIONAL. Whether the event results in consequential loss, is a different story all together. There are many frauds that do take place, but they mainly result in unlawful and personal gain, but not necessarily result in excessive financial losses. Examples of these include secret associations with vendors, suppliers for goods and services at fair market prices, but with personal gains and favors. Fraud risk management has three key stages. 1. Prevent the fraud in the first place, if you can 2. Detect frauds that do ultimately take place 3. Act upon the frauds that you have detected. As we roll out the fraud risk management series across the next few months, you will read through how to effectively manage fraud.