RiskTracker - the Consistent Approach to Customer Due Diligence

RiskTracker has been designed to help businesses implement the ‘risk based approach’ which has become a central requirement of money laundering prevention. It means that a business should direct its resources where the risk is greatest, but how should a firm arrive at a consistent definition of client risk?

RiskTracker requires a firm to select both the criteria it believes contribute to client risk, and their relative importance. Once this is decided RiskTracker will produce a risk score for each client and the firm will then have:-

• A risk based overview of the entire client base
• Instant identification of any knowledge gaps
• A basis on which to efficiently direct its resources
• Evidence for regulators and auditors that a credible risk based approach has been adopted
• A tool which can be loaded on a laptop to give an instant assessment of whether a new client is within a firm’s normal risk tolerance
• Something secure yet flexible which can be used at a group level to compare client risk in different offices around the globe
• Something which amends a client’s risk score as their residence, occupation, wealth, etc. changes

We are so confident that RiskTracker will make a huge contribution to risk management that we are talking to Professional Indemnity Brokers to see if installation of RiskTracker can attract a reduction in premium. Whatever the outcome of those discussions, we predict that in the near future, an adaptable tool such as RiskTracker will be as central to a regulated firm’s systems as e-mail is now.