Our operating environment has changed, no doubt about it! - both in terms of our personal space and business operations. Many of us are currently working from the confines and solitude of our homes, either temporarily or permanently - COVID will tell! We have been fast-tracked into a digital morass requiring us to - almost overnight - with the announcement of the global pandemic response by governments across the globe, ensure that we have shaped up on our digital and technology-related skills. In many cases our access to our clients, colleagues and work information is through electronic means. We have been changed into digital beings, with those who have previously resisted the change (because our forefathers did not teach us this), being thrust head-on into the electronic age. If we are not agile enough to adjust, we will not survive. Criminals have wasted no time in making their adjustments and are conducting their illegal activities electronically and preying on the digitally constrained victims. It is apparent from the increased media reports on cyber-crime, and fraud on digital platforms! Whether the changed way that we do business is a interim arrangement, or likely to be permanent, it is clear that we need to respond, if we are to safeguard ourselves and our businesses and livelihoods. Some of the changed ways that we now do business, might never return to where they were prior to COVID-19. A harsh reality, or forced change in response to our digital world? The first step to any response to financial crime risk, is to conduct a risk assessment. It clearly needs to consider the changed the operating environment. The risk assessment process, will quickly ascertain whether existing control measures are adequate to address financial crime vulnerabilities, and the extent to which they are effective. Conducting a financial crime risk assessment We have just concluded a three part series on a practical approach to conducting a financial crime risk assessment. We considered the manner in which to perform an inherent risk assessment, the evaluation of existing control measures, steps to followed once residual risk is determined, and how to address the risks and deficiencies identified. During the series, we were grateful to receive and reply to questions from participants on how to collate the number of risk assessment activities, given the complexities and specific requirements of their organisations. It was clear that the execution requires a dedicated and logical process. Some challenges encountered included building a repository of information and documentation, tracking of progress achieved across business lines and geographies, and reporting on risk and progress achieved. It was clear that automation of the risk assessment process, by the use of technology, was the way to go. If you are interested in seeing more - we have posted a summary of the areas addressed on our web-page fcrmc.co.za - look for it under the 'happenings' section. It is apparent that we are living in a very different world to that which predated the global pandemic. Any resistance to the electronic and digital way of doing things has quickly dissipated in the face of reality. We have had to adjust as a matter of survival. This blog is aimed at keeping you informed of global developments around financial crime as well the those more close to home - within the region and our country. Should you wish us to consider any particular financial crime risk related area of interest to you, please let us know.