Explanation:
The correct answer is B.
Selection is a crucial component of a framework designed to control and mitigate internal fraud risks. This process involves the careful screening of employees and associated third parties. The organization's culture is also taken into account during this step. When firms hire individuals who align with their values and ethical standards, managing these employees becomes significantly easier. Selection also plays a vital role in Anti-Money Laundering (AML) and third-party risk management, serving as an important mitigation mechanism.
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Q.5122 A risk manager at a large bank states that the bank has zero tolerance for internal fraud. He goes ahead to highlight that the bank has a robust framework of controls and measures to mitigate internal fraud risks. Which of the following is a component of such a framework?
A
Inspections
B
Selection
C
Placement
D
Layering
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