What is included in a compliance risk assessment?

A compliance risk assessment primarily focuses on identifying and evaluating potential compliance risks that an organization may face, alongside assessing the effectiveness of existing controls to mitigate those risks. This process involves systematically examining various areas of the organization’s operations to ensure compliance with applicable laws, regulations, and internal policies.

By evaluating potential compliance risks, organizations can prioritize their compliance efforts, allocate resources more effectively, and implement necessary changes to strengthen their compliance posture. Moreover, assessing the effectiveness of current controls allows organizations to recognize any gaps or weaknesses in their compliance framework, leading to improvements that reduce risk exposure.

In contrast, establishing new marketing strategies, reviewing customer onboarding procedures, and analyzing competitive banking practices can be components of broader strategic or operational assessments, but they do not specifically focus on the evaluation of compliance risks or the effectiveness of compliance controls. Thus, these activities do not accurately represent the core objectives of a compliance risk assessment.