4 Considerations for Fraud Risk Management
Corporate fraud is a tale as old as time. The total costs of a fraud attempt and the complete set of risks facing a financial institution in the aftermath of a fraud attack often go far beyond the fraud losses itself. That is, organizations must also account for legal costs, investigation costs, reputational risks, as well as eroded confidence and customer loss. An effective fraud framework will include prevention, detection, and deterrence. Organizations often focus on prevention and detection and neglect fraud deterrence, which involves proactive rather than reactive measures. Given the high occurrence and costs of fraud, both financial and reputational, organizations with successful fraud management frameworks in place could have an edge over competitors.
With billions of dollars that can be lost due to fraud, organizations are increasingly concerned with fraud risk management, looking towards a more proactive approach rather than a compliance-driven one. Read on for four important considerations in fraud risk management: Read more