Certified Fraud Examiner Practice Exam 2026 – All-in-One Guide to Master Your Certification!

Mediation is defined as a process in which a neutral third party assists the disputing parties in reaching a mutual agreement or resolution. The mediator does not have the authority to make binding decisions like an arbitrator or judge. Instead, the mediator facilitates the conversation, helping each party communicate their interests and concerns, which can lead to a collaborative agreement. This process emphasizes collaboration and open dialogue, making it a constructive approach to resolving conflicts.

In mediation, the focus is on helping parties explore their options and find a satisfactory solution that is acceptable to all involved. This is in contrast to other methods, such as litigation, where a judge makes a decision, or negotiation, which occurs without any third-party assistance. Mediation is particularly effective when parties seek to preserve relationships or need to cooperate moving forward, as it encourages ongoing dialogue and respect during the resolution process.