Which action reflects an awareness of potential fraud in a risk management process?

Identifying and assessing changes is a crucial action that demonstrates an awareness of potential fraud within a risk management process. Acknowledging and evaluating changes—whether they come from regulatory updates, shifts in market conditions, or internal operational adjustments—allows an organization to pinpoint areas that may be vulnerable to fraud. Such awareness helps in developing proactive measures to mitigate these risks.

By continuously assessing these changes, organizations can recognize patterns or anomalies that could indicate fraudulent activity. This ongoing evaluation not only supports the integrity of the organization’s operations but also strengthens its overall risk management framework by ensuring that it adapts to new threats and vulnerabilities as they arise. Identifying and assessing changes thus becomes integral in forming a dynamic strategy to combat fraud effectively, which is essential for maintaining trust and compliance within the operational landscape.