FCRA: Risk Assessment and Financial Crime

A thorough understanding of its financial crime risks is key if a firm is to apply proportionate systems and controls. The following are self-assessment questions to help you implement an efficient risk assessment to mitigate the risk behind finance crime.

Self-assessment questions:

• What are the main financial crime risks to the business?
• How does your firm seek to understand the financial crime risks it faces?
• When did the firm last update its risk assessment?
• How do you identify new or emerging financial crime risks?
• Is there evidence that risk is considered and recorded systematically, updated assessments, and appropriate sign-off?
• Who challenges risk assessments and how? Is this process sufficiently rigorous and well-documented?
• How do procedures on the ground adapt to emerging risks? (For example, how quickly are policy manuals updated and procedures amended?)

Examples of good practice:

• A comprehensive risk assessment.
• Risk assessment is a continuous process based on the best information available from internal and external sources.
• The firm assesses where risks are greater and concentrates its resources accordingly.
• The firm actively considers the impact of crime on customers.
• The firm considers financial crime risk when designing new products and services.

Examples of poor practice:

• Risk assessment is a one-off exercise.
• Efforts to understand risk are piecemeal and lack coordination.
• Risk assessments are incomplete.
• The firm targets financial crimes that affect the bottom line (e.g. fraud against the firm) but neglects those where third parties suffer (e.g. fraud against customers)

Using An External Services Provider to Conduct Your Financial Crime Risk Assessment

Aside from it often being difficult to schedule time for this type of review or know where to start, there is considerable benefit in having an independent, objective review of the financial crime risks your business faces. Corporate Research and Investigations Limited (CRI Group™) has a wealth of knowledge in Financial Crime and can help you identify risks and exposures that might otherwise be missed, thereby enabling appropriate procedures to be put in place.

To engage CRI Group™ to conduct your Financial Crime Risk Assessment, contact the CRI™ team. CRI™ has a dedicated team of experienced compliance consultants who can provide expert assurance and peace of mind. Get in touch to see how we can help your organisation.

About CRI Group™

CRI Group™ has protected businesses from fraud, bribery and corruption since 1990. We are a leading Compliance and Risk Management company licensed and incorporated entity of the Dubai International Financial Center (DIFC) and Qatar Financial Center (QFC). CRI™ protects businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business.

In 2016, the company launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence. This independent certification body helps organisations mitigate internal and external risks by providing a complete suite of Anti-Bribery, Compliance and Risk Management programs.

Based in London, CRI Group™ works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. Our global team can support your organisation anywhere in the world. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group™ also holds BS 102000:2013 and BS 7858:2012 Certifications and is an HRO-certified provider and partner with Oracle.

In 2016, CRI Group™ launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC™ for more on ISO Certification and training.