What is the first step in designing an effective controls framework using a risk-based approach?

The correct answer is D. Conducting a risk assessment. The first step in designing an effective controls framework using a risk-based approach is conducting a risk assessment. This identifies and evaluates inherent risks, providing the basis for determining which controls are necessary and how they should be prioritized.

AML/CFT Compliance Programs

Question

Options

AEstablishing risk controls
BAssessing risk controls
COngoing risk monitoring
DConducting a risk assessment

How the community answered

(49 responses)

A
6% (3)
B
10% (5)
C
2% (1)
D
82% (40)

Explanation

The first step in designing an effective controls framework using a risk-based approach is conducting a risk assessment. This identifies and evaluates inherent risks, providing the basis for determining which controls are necessary and how they should be prioritized.

Topics

#risk-based approach#controls framework#risk assessment#compliance program design

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