Detection of financial fraud risk: Implications for financial stability

Transparent and competitive financial management policy and practice are, gener- ally, instrumental for local, regional and global financial stability. However, different types of fraudulent financial activities have, from time to time, destabilized global financial stability; we are not well equipped to combat such threats, stabilize the global financial industry and prevent financial fraud in a sustainable way, as the extant literature in this field demonstrates that we have limited knowledge of finan- cial criminology. This introduction to the Journal of Operational Risk special issue shines a light on the relationship between financial fraud risks and financial stabil- ity. As well as highlighting the gaps in financial fraud research, we briefly discuss the papers in this special issue. We also offer an in-depth account of the emerging financial fraud risks, and their potential impact on financial stability, as a direction for future research.