What are the key steps in performing an effective firm-wide risk assessment?
There are three key steps in performing an effective firm-wide risk assessment:
- identifying the money laundering risks faced by different areas of the business, clients and market served by the firm.
- assessing each risk identified by considering the likelihood of it occurring and the resulting impact if it occurs.
- reviewing the mitigating checks, systems and controls put in place, or mitigating actions to be taken, to bring the level of net risk to an acceptable level.
