A Financial Crime Risk Appetite Statement sets out how much risk an organisation is willing to take as part of its business model, and is a key component of a Financial Crime Framework. No two Risk Appetite Statements will be the same, as they incorporate the outputs of the business strategy and enterprise-wide risk assessment, so are bespoke to each organisation. However, the core elements will remain the same as the document must include the organisational attitude to the composite elements of financial crime, along with metrics and tolerances to measure whether appetite could be breached.
This Financial Crime Risk Appetite Statement template is provided in Word format over 7 pages and 1,574 words. It includes suggested wording for appetite statements in the key areas of financial crime, especially with regards to high risk areas. Elements in [square brackets] require editing to make it specific to your organisation.
Design is based on financial services organisations globally and covers the following aspects:
1. Purpose
2. Scope
3. Statement of Financial Crime Risk Appetite
3.1 Financial Crime
3.2 Money Laundering
3.3 Sanctions
3.4 Tax Evasion
3.5 Bribery and Corruption
3.6 Fraud
3.7 Modern Slavery
3.8 System and Controls
4. Governance