Question

A financial institution processes thousands of high-value wire transfers daily. The risk practitioner is designing a monitoring approach for the fraud-detection control governing these transfers. Given the transaction volume and the potential for large, rapid financial loss from a single fraudulent transfer, which monitoring approach should the practitioner recommend?

Accepted Answer

Continuous automated monitoring with real-time alerting on anomalous transactions

Answer

Quarterly control self-assessments completed by the wire-transfer operations team

Answer

An annual independent audit of a statistical sample of wire transfers

Answer

Monthly management review of aggregated transfer volume reports