The study investigated the relationship between forensic auditing practices and fraud risk management at ABSA Bank, Kampala, Uganda. Employing a descriptive correlational research design, the study surveyed 92 respondents comprising internal auditors, risk management officers, fraud investigators, and senior management personnel. Data were collected through structured questionnaires and analysis of fraud incident reports covering the period 2020-2023. The findings revealed a strong positive correlation (r = 0.812, p < 0.001) between forensic auditing practices and fraud risk management effectiveness. Specifically, forensic audit investigations detected 89% of fraud cases, while preventive forensic audit procedures reduced fraud incidents by 58% over the study period. Fraud losses declined from UGX 1.2 billion in 2020 to UGX 384 million in 2023, representing a 68% reduction. The study found that forensic auditing techniques including digital forensics (r = 0.768), financial statement analysis (r = 0.741), and fraud detection algorithms (r = 0.793) were significantly correlated with reduced fraud risk exposure. Recovery rates for fraudulent transactions improved from 34% to 71% following strengthened forensic audit capabilities. The study concluded that forensic auditing was a critical component of comprehensive fraud risk management frameworks in banking institutions. It was recommended that ABSA Bank should enhance forensic audit capacity through advanced technology adoption, continuous staff training in forensic techniques, establishment of a dedicated forensic audit unit, and strengthening of whistleblower protection mechanisms. Other financial institutions were encouraged to integrate forensic auditing into their fraud risk management strategies.