Production Schedule Adherence

Measures the effectiveness of a company’s fraud detection systems and practices.

What it Measures ?

How good are we at catching fraud?

Relevant StakeHolders 

Risk Team, Internal Audit

Why it Matters ?

Tracks fraud prevention effectiveness.

In-depth Use Case / Real-world Example

Fraud Detection Rate is calculated by dividing the number of detected fraud instances by the total number of potential fraud cases identified. For example, if a company detects 15 instances of fraud out of 20 potential cases, the fraud detection rate is 75%. A high detection rate reflects robust internal controls, risk management, and vigilance against fraudulent activities. A low rate may signal weaknesses in fraud detection systems, which could lead to financial losses, reputational damage, or legal issues.