A cornerstone of every strong compliance function is their risk assessment. The challenge is having something that is all encompassing but not requiring a small army to complete it; being easy to compare year on year but not so high level that no risks can ever be identified. Not every business has the scale to buy in a system for their risk assessment or has the confidence that the environment being assessed is sufficiently stable to warrant hard coding.
In practice most, even large firms, run their risk assessment on Excel, its flexible, relatively cheap, and the vast majority of staff can use Excel. This Compliance Risk Assessment gives you a template in Excel for carrying out an assessment of the risks of noncompliance across your business. It meets the late 2020 requirements from the FCA about the new operating environment, including remote working.
Contained within your digital download are:
- The risk assessment which has templates ready for you to assess two business areas and one firm-wide
- Pre-set risk ratings and associated colour coding that you can customise
- Industry standard risk responses
- Three templates for dashboards to use to present to your business committee and board
- Instructions on how to use the templates
- Step by step guides to bespoke the template for your business
- Best practice for conducting a risk assessment
This Compliance Risk Assessment is designed for Compliance to use with the business that they are assessing. It has ready made templates and dashboards so that you can provide your business lines, or support functions, with their own cut of the data. Whilst simultaneously enabling you to carry out a firm-wide risk assessment and report those results on a dashboard.
Smaller firms can easily delete the templates they do not need without having any impact on the rest of the risk assessment, because it has been carefully constructed to avoid formula’s, so it is easy on the user. For the large firms with several business lines and functions to risk assess, you can easily copy and paste the ready-made template for as many risk assessments that you need to conduct.
This Compliance Risk Assessment covers every core area of regulation with which every firm has to comply. There is a question bank of over 200 questions which are suitable for the majority of regulated firms. For example, a firm that perhaps does not create their own products and so does not have to comply with all aspects of product governance may choose to remove that bank of questions.
There are proposed risk scorings, so you don’t have to start from scratch, and it uses industry standard risk responses such as mitigate, accept, and prevent.
The actual compliance risk assessment comprises over 200 questions covering seven risk categories:
- Management and governance
- Personal accountability
- Proper standards of market conduct
- Combatting financial crime
- Adequate financial resources
- Protecting customers monies and assets
- Fair treatment of customers
Every risk category is further divided into sub risks to enable you to better analyse the results.
Whilst the spreadsheet contains drop down menu’s and preformatted colour coding it is completely customisable, free of any macros or coding, so you can just download and start your assessment. There are step-by-step guides which talk you through in very simple terms how to adjust the drop-down menu’s or colour coding.
The pack should be relatively straightforward for someone outside the UK, and not familiar with the UK regime, to follow and deliver.
Compliance Risk Assessment
This document is in Microsoft Excel (*.xlsx) format