Business
Risk Assessment

Business Risk Assessment

The business environment is constantly changing and it became more challenging to predict the tendencies due to many factors influencing it, including changes in the strategy, the customer base or the technology for instance. Therefore, the risk exposure may also evolve and your business shall have an adequate response to it. Finally, its a regulatory requirement that each institution has a proper risk assessment, covering all risk factors in place.

  1. Do you have a methodology that is using quantitative and qualitative elements?
  2. Does your business risk assessment cover also all inherent risk aspects of the financial crime, such as AFC, Sanctions, ABC?
  3. How do you articulate the annual plan and activities with the outcome of the Business Risk Assessment?

A comprehensive business risk assessment will cover the inherent risk – all the services and products offered by your business. It will closely review the customer base, analyse the purpose of initiating the cooperation and the facts. Moreover, it will apply different criteria based on the location and covering all geographic regions you operate in, emphasizing the high-risk areas where your institution may be more vulnerable to potential risks. Analysing the response of the institution addressing the risks, a residual risk assessment is calculated. It evaluates the adequacy and effectiveness of the compliance program in place.

The organisations may misinterpret the results of the risk assessment, therefore the correct approach shall be used, that will lead the institution to sustainable and safe business growth and success.