Fraud Risk Management (FRM) has emerged as a critical specialization within the broader field of Risk Management, driven by the growing fraudulent activities across organizations. Integrating FRM within the Enterprise Risk Management (ERM) framework allows organizations to proactively identify and mitigate fraud risks, safeguarding their integrity and trustworthiness in an increasingly complex and digital landscape. The necessity of specialized FRM departments has become paramount, working alongside traditional Risk Management, Audit, and Compliance units to ensure robust fraud prevention, detection, and response mechanisms. This chapter delves into the pivotal role of FRM, emphasizing the integration of advanced digital tools such as Artificial Intelligence, Machine Learning, Big Data Analytics, and Behavioral Biometrics in combating modern fraud tactics. Despite challenges like data integration and privacy concerns, these technologies offer essential capabilities for real-time fraud detection and accurate risk assessment. The chapter also addresses the unique challenges faced by financial institutions in developing countries such as India and Nigeria, where environmental, economic, regulatory, and individual factors further complicate fraud risk management. By applying theoretical frameworks like the Fraud Triangle and Pentagon, and promoting continuous innovation in fraud risk strategies, organizations can build resilient defenses that advance both research and practical applications in the field.