1. BSA/AML Risk Assessments: The Evolution Continues

BSA/AML Risk Assessments: The Evolution Continues

Event ID: 2144257
Not for Sale
Recording: Unable to attend? A recording will be available after the presentation.
Duration: Scheduled for 90 minutes including question and answer period.
Presenter: Kenneth Agle, president, AdvisX
Credits: Live webinar approved for 1.5 NASBA credit hours (Management Services)

BSA/AML Risk Assessments: The Evolution Continues

According to FinCEN, a well-developed BSA/AML Risk Assessment “will assist in identifying the bank’s BSA/AML risk profile. Understanding the risk profile enables the bank to apply appropriate risk management processes to the BSA/AML compliance program to mitigate risk. This risk assessment process enables management to better identify and mitigate gaps in the bank’s controls.” These tenets, when carefully considered, clearly require an organization to direct appropriate resources and effort to the Risk Assessment. Most organizations have found the process challenging, ranging from overly simplified to frustrating.

While answering questions that provide a few options for performance can achieve a score, the question of whether such approach can ever manage risk by identifying and mitigating gaps is a resounding no. But, developing and implementing an effective BSA/AML Process can be daunting especially when no clear pattern or guide is provided.

FinCEN’s examination manual notes that the development of the BSA/AML risk assessment generally involves two steps. One, identifying specific risk categories unique to the organization. Two, conducting a more detailed analysis of the data identified to better assess the risk within these categories. It is this second element that can really wreak havoc for the assessment and it is in this area where we focus our efforts for this webinar. We’ll focus on methods and means of arriving at Residual Risk and how Quality Risk Management is critical to factor. We’ll provide guidance on how Quantity and Direction of Risk can be used to establish Relative Risk for an organization and a scoring template that can be adjusted by your organization based on your perceptions of weighting. Finally, we’ll show how these elements fit within a narrative-based document that incorporates scoring factors that promote trending analysis, a critical factor for ensuring a sound strategic risk assessment.

Please join Kenneth Agle, president of AdvisX, for a 90-minute webinar as he provides a comprehensive foundational understanding of the BSA/AML Risk Assessment and then presents methods and samples for completing the assessment. Using the concepts and working example and forms presented, you will have a foundation and expanded capacity to take your next Risk Assessment to the higher level that achieves the intent and expectations of the BSA/AML Risk Assessment.


Just a sampling of what this webinar will cover:

  • Why BSA/AML Risk Assessments are critical strategic documents and the foundational elements needed to complete the assessment.
  • How Inherent Risk is just the beginning and the importance and methods of establishing Quality Risk Management (QRM) to establish Residual Risk.
  • Sample QRM documents for identifying and rating controls.
  • Concepts and practices for Quantity and Direction of Risk.
  • Review of provided sample Risk Assessment and support documents with discussion on how scoring was achieved and how organizations can adjust that scoring based on their perceptions on weighting and risk.