Finacial

Australian Government

Australian Transaction Reports and Analysis Centre

Risk management

A tool for small-to-medium sized businesses

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Contents

Introduction............................................................................................................................................. 2 Scope and limitations ............................................................................................................................. 2 What is risk?........................................................................................................................................... 2 What is risk management?..................................................................................................................... 2 Which risks do you need to manage? .................................................................................................... 2 The risk management framework (or method)....................................................................................... 3 The risk management process............................................................................................................... 4 Risk identification ................................................................................................................................... 4 Business risk .......................................................................................................................................... 4 Regulatory risk ....................................................................................................................................... 5 Risk assessment .................................................................................................................................... 6 Likelihood scale...................................................................................................................................... 6...