The impact of risk management on reducing financial fraud (a field study)

As a result of recent developments in the business environment, the expansion of the size of institutions and the increase in financial fraud, the internal audit function has become an important function that aims to achieve goals compatible with those developments, which prompted the departments to increase internal audit support and expand its activities to meet these developments. The study aimed to test the impact of risk management (RM) in MFF (RFF), as a field study on a sample of banks and insurance companies listed on the Iraq Stock Exchange and the Iraqi company’s registry for the year 2021. For the purpose of achieving the objectives of the study, a sample of (170) employees working in risk management and internal auditors working in those banks and companies were dealt with. Progressive multiplex) in examining the relationship and the effect between the study variables by using the statistical program (SPSS) and the statistical program (AMOS: Ver. 22) was used to measure these direct and indirect effects between the study variables, and to identify the level of significance of the direct and indirect relationships between for those variables, the Maximum Likelihood method was used. The study concluded that risk management acts as one of the critical organizational factors for managing financial fraud in organizations, our findings indicate that expanding the scope of RM leads to better opportunities for fraud prevention and detection, and the results of the study enhance our understanding of the importance of engaging internal audit activities in RM. The study recommended expanding the scope of RM because of the importance of the results achieved in MFF.