CH28- Risk based approach Flashcards
The role of a risk based approach
Perception of risk will enable a business to tailor its response accordingly
Need to design and implement controls to manage and mitigate risks
Risk assessment
In carrying out risk assessment must take into account the following
1) Information made available to them by supervisory authority
2) Risk factors under key categories
Risk assessment should be carried out at start of client relationship
All risk assessments should be documented to provide evidence of how they link in with policies and procedures
Risk factors under key categories
Its customers The countries/geographic areas in which it operates Its products or services Its transactions Its delivery channels
Who is responsible for risk assessment
Senior management
Increasing CDD is
Mitigating the risk
Low risk clients and CDD
Apply less CDD than you would for high risk client
Senior manage, MRLO and CDD
Senior manage must approve risk analysis if conducted by MRLO
Documents required by sole trader
Written risk assess of practice
Written policies and procedures
