What is a primary responsibility of the board of directors regarding fraud?

The primary responsibility of the board of directors regarding fraud is to oversee fraud risk management activities. This involves ensuring that appropriate measures are in place to identify, assess, and mitigate potential fraud risks within the organization. The board plays a critical role in establishing a culture of integrity and ethical behavior, which is foundational for effective fraud risk management.

By overseeing these activities, the board ensures that the organization's leadership implements proper controls and processes to detect and prevent fraudulent activities. They must also ensure that there is a clear understanding of the fraud risks that the organization faces, and that there is a strategic approach to managing these risks. This oversight is crucial as it contributes to maintaining stakeholder trust and safeguarding the organization’s assets.

The other options, such as establishing operational policies, setting marketing strategies, and directing financial audits, while important functions, do not specifically focus on the direct oversight of fraud risk management, which is the board's crucial responsibility in maintaining the integrity and security of the organization’s operations.