Through thorough analysis and discussion, Phocion’s Risk Assessment service provides a template that investigates the firm’s:
- Activities – These are the unique aspects of the firm’s operations.
- Inherent Risk – This refers to the degree of risk exposure to the firm in the complete absence of any compliance program.
- Compliance Program – This refers to the internal controls implemented throughout the investment firm for the purposes of mitigating risk and ensuring ongoing compliance with the regulatory requirements along with the firm’s policies and procedures.
Following such a review, Phocion’s Risk Assessment assists a firm to identify activities that pose more risk than others. In so doing, this helps a firm decide whether to accept a certain level of risk or to take the appropriate steps to avoid or reduce. In essence, Phocion’s Risk Assessment scorecard provides compliance personnel with the road map towards developing and implementing a compliance program that fully aligns with the firm’s risk appetite.