When it comes to reducing employee fraud, regulators look favorably on companies that can demonstrate good _________________ and best practice operational risk management.
A) Corporate governance
B) Access to legal counsel
C) Relationships with security vendors
D) Awareness of industry standards

Question

Quizplus · Accepted Answer

Corporate governance refers to a company's set of policies, procedures, and practices to ensure that management is accountable to stakeholders and operates the company in an ethical and transparent way. A strong corporate governance framework includes effective risk management, internal controls, and compliance programs, which can help prevent and detect employee fraud. Regulators and investors often view good corporate governance as a sign of a well-run company and are more likely to trust and invest in such companies.  Access to legal counsel, relationships with security vendors, and awareness of industry standards can all be important components of reducing employee fraud, but they do not encompass the broader scope of corporate governance.

When It Comes to Reducing Employee Fraud, Regulators Look Favorably