A Tax Evasion Risk Assessment is a methodology to identify and understand the inherent risks faced by an organisation, both internally and when engaging with third parties, and whether the controls in place are sufficient to mitigate those risks. The outputs are the residual tax evasion risks, which (if outside of risk appetite) will feed into the Financial Crime Framework enhancement initiatives.
This Tax Evasion Risk Assessment consists of two documents:
1. A Risk and Controls Scoring Tool (in Excel) utilising 42 inherent risk questions and 84 control questions to calculate the organisation's quantitative risk rating.
2. A Risk Assessment Template (in Word) to provide qualitative analysis of the risk rating.
The Risk Assessment covers the following Inherent Risks:
- Industry/Sector
- Countries
- Opportunity
- Clients
- Business Partnerships
- Transaction
- Organisation
The Risk Assessment covers the following Controls:
- Governance
- Reporting
- New Products/Services
- Due Diligence
- Monitoring
- Employee Engagement
- Assurance