Identify risk beyond client AML/CFT risk, to which the business is exposed, including but not limited to Country, Sector, entity-specific and relationship.
Measure the likelihood and impact of potential events, and determine what action if any, to take as follows:
Risk Response | Description |
Avoid | eliminate the risk by preventing exposure to future potential event |
Accept | maintain the risk |
Reduce | implement policies and procedures to bring the risk to an acceptable level |
Share | shift the risk to a financially capable, independent counterparty |
Implement policies and procedures, reporting and technology, which may be employed in executing a response to manage the risk.