FCMB reports 75% internal fraud


LAGOS (investadvocate)

July 21, 2010 16:00 GMT


First City Monument Bank Plc (FCMB) has reported 75 percent (75%) internal fraud in its operations. This was contained in the Annual Reports and Accounts December 2009 made available to investadvocate at the Bank’s 27th Annual General Meeting (AGM) held Wednesday July 21 2010 in Lagos Nigeria.


This was part of the Bank’s Financial Risk Analysis for the eight (8) month period ended December 31, 2009. The fraud the bank affirms amounts to about N80 million.


FCMB however, confirmed that the Bank’s operational risk losses as at December, 2009 was within the Board approved risk appetite which is 0.25 percent (0.25%) of Gross Income.


From the Basel risk event type, frequency for the operational risk of the internal fraud incidents within the period under review was 34 percent (34%).


While External Fraud was reported as 15 percent (15%) with a frequency for the operational risk as 14 percent (14%).




Loss by the Basel risk event type confirmed that fraud both internal and external accounted for 48 percent (48%) of the number of incidents experienced within the period under review.


FCMB further affirmed in the report that most of the losses experienced (by number of incidents) are within the N100, 000 to N500,000 and N1 million to N5 million buckets representing 31 percent (31%) and 24 percent (24%) of the number of loss incidents respectively.


“Low frequency-high impact events were within the N10 million to N15 million bucket and represents 14 percent (14%) of the number of operational risk incidents and 56 percent (56%) of losses incurred in the period. No single operational risk loss was above N20 million in the financial year” FCMB said.






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