What is the focus of policies and procedures within a fraud risk management program?

The focus of policies and procedures within a fraud risk management program is primarily centered on preventing, detecting, and responding to fraud. This framework is essential because it establishes a systematic approach to identifying potential fraud risks, implementing controls to mitigate those risks, and setting up processes to monitor for fraudulent activities.

By emphasizing prevention, organizations can create a culture that deters potential fraudulent behaviors among employees and stakeholders. Detection mechanisms must be in place to identify any signs of fraud early, allowing organizations to respond effectively. This proactive and reactive strategy is critical to safeguarding an organization’s assets and maintaining its reputation.

Other aspects, such as managing employee performance and minimizing operational costs, while important, do not specifically address the comprehensive measures needed to combat fraud. Moreover, promoting fair market competition is a broader economic principle that does not directly relate to the specific actions involved in a fraud risk management program. Thus, focusing on preventing, detecting, and responding to fraud encapsulates the key goals of such a program effectively.