The board of directors and senior management must maintain a continuous focus on fraud deterrence by communicating FRM objectives at all organizational levels. Communication must be two-way, ensuring that early warning systems and reporting mechanisms are clear to all stakeholders.
Reporting Best Practices:
- User-Friendly Dashboards: Enhancing fraud governance through the use of data analytics and reporting that is accessible to non-technical stakeholders.
- Suspicious Activity Reporting (SAR): Establishing clear procedures for investigating and reporting suspicious activities to both internal oversight bodies and, when necessary, external law enforcement or regulatory bodies.
- Measuring Success: Monitoring and assessing fraud losses across the entire enterprise using tools that appropriately quantify loss experience and exposure.