Fraud risk management and organizational resilience: An empirical analysis controlling for organizational culture

Sanusi, A. R and Sanusi, I and Yinusa, S and Abugh, I (2025) Fraud risk management and organizational resilience: An empirical analysis controlling for organizational culture. World Journal of Advanced Research and Reviews, 26 (2). pp. 2446-2458. ISSN 2581-9615

Fraud risk management remains a critical concern for financial institutions, as fraudulent activities threaten organizational resilience and sustainability. This study examines the impact of fraud risk management techniques—risk assessment practices, internal controls and continuous monitoring, fraud investigation and response strategies, and regulatory compliance and legal frameworks—on organizational resilience incorporating organizational culture as control variable in strengthening this relationship. A quantitative research approach was employed, utilizing a structured questionnaire to collect data from employees in the internal audit, compliance, forensic, and risk management departments of Santa micro-finance bank, Nigeria Limited. The study adopted Yamane’s formula to determine the sample size and stratified random sampling to ensure adequate representation. Ordinary Least Squares (OLS) regression analysis was conducted through multiple linear regression to test the hypotheses. The reliability and validity of the research instrument were confirmed through Cronbach’s alpha and expert reviews. Model diagnostics, including collinearity statistics and Durbin-Watson tests, confirmed the reliability of the regression model. The findings reveal that all four fraud risk management techniques have a significant positive effect on organizational resilience. Additionally, the control variable (organizational culture) also significantly influences organizational resilience, indicating that a strong ethical culture enhances fraud risk management effectiveness. The model explains a substantial variance in organizational resilience, further confirming the importance of these variables. Therefore, the study recommend that financial institutions should enhance their fraud risk management strategies, strengthen internal controls, and cultivate a robust organizational culture that promotes ethical behavior. Policymakers should implement stricter regulatory frameworks to ensure compliance and accountability.