Risk Assessments
The foundation of any good BSA/AML compliance program is the institution’s risk assessment. Recent enforcement actions cite weak risk assessments as an instigating factor.
Model Validations
Model Validations
The current environment stresses a culture of compliance, and regulators mandate that financial institutions have a solid, efficient risk-based BSA/AML program in place.
Your BSA/AML program needs to evolve as your institution introduces new products and services, modifies existing products and services, and expands through additional subsidiaries, mergers, and acquisitions. New technology and industry trends also need to be considered.
Understanding your risk profile enables your institution to apply appropriate risk management processes to your BSA/AML compliance program to reduce liabilities. The process enables management to better identify and mitigate gaps in your institution’s controls.
Auditors and examiners will review your BSA/AML Risk Assessment along with your policies and procedures to determine whether the BSA/AML compliance program is adequate and provides the controls necessary to diminish exposure.
The Risk Assessment process should:
- Tell the story of the risk profile at your institution and be easy to understand
- Identify specific risk categories
- Include a detailed analysis of data identified to evaluate the risk within identified risk categories (Quantitative/Qualitative)
- Identify inherent risk, mitigating controls with the resulting residual risk
- Be updated on a regular basis
The highly qualified staff at Arc-Serv has the art of a thorough and detailed risk assessment down to a science.
Arc-Serv: Strategic Solutions for Regulatory Excellence
Arc-Serv offers a range of services to support your BSA, AML, OFAC, and fraud-related projects, including system customization,
training, gap analysis, vendor due diligence, and more. Contact us for your personalized quote.