Fraud monitoring involves what type of operational process?

Fraud monitoring is a crucial component of transaction security and risk management in financial services. Setting alert parameters for reviewing transactions is essential because it enables organizations to detect unusual or potentially fraudulent activity as it occurs. By defining specific criteria, such as transaction amounts, geographic locations, and patterns of behavior, businesses can establish alerts that trigger further investigation when anomalies arise.

This proactive approach helps in identifying and mitigating risks before losses occur, thus protecting both the organization and its customers from financial fraud. Implementing these parameters is a foundational operational process in fraud monitoring, as it creates a structured method for identifying and addressing potentially fraudulent transactions in real time.

The other options, while they may play a role in various aspects of a business's operations, do not directly pertain to the operational process of fraud monitoring.