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MAIN TYPE OF FRAUD THAT AFFECT COMPANIES
• Account take-over - where a fraudster collects sufficient information about the victim to dupe the victim’s financial institution that they are the customer

HOW IS THE ID OBTAINED / USED
• Personal Theft / Social Engineering / Internet / Business Theft / Lost
• Information on Company Directors obtained via Companies House
• Instances of insider infiltration – obtaining information to be used in fraud
• Fraudster has sufficient information to pretend to be customer and uses it

"Why reputation is damaged when customers are taken for a ride"

It is the same story being repeated time and over again. Startups, larger companies, well established companies all dealing with customers, sometimes tend to take customers for granted.

Risk appetite, stress testing, and capital planning are inextricably linked because it is difficult to address any of the three concepts individually without addressing the others.

Risk appetite can be regarded as the most fundamental concept for the following reasons:

•It drives the other two:
o It is not as meaningful to analyze the implications of a stress test, or to plan how much capital the bank will require, without first reconciling risk-taking and business goals.

•It comes from the top:
o Risk appetite is a board-level initiative that permeates the entire organization.

At Riskpro, our goal is to bring you closer to global best practices in Risk Management. Often, we share relevant and useful content from other leading risk consulting organization. Given below is a very good document from Ernst & Young on Risk Management.

www.ey.com/Publication/vwLUAssets/Insurance_Business_Pulse,_2013%E2%80%9...$FILE/Insurance-Business-Pulse-2013%E2%80%932015.pdf

The Wolfsberg Principles gives a rule of thumb of one year after giving up a political function but some other guides give a two year period and individual practice may vary from one financial institution to another.

Every training channel has its advantages and disadvantages. Today, we will evaluate how AML E Learning can be an effective tool to manage money laundering.

Firstly, it is important to understand why Banks are at risk from money launderers. The biggest risk is the willingness of the Bank to prevent money laundering. Taking a few cases of international banks, these Banks knowingly allowed money laundering primarily with a business objective of earning larger profits from these transactions. It was a strategic decision.

Although, under Basel II, Indian Banks are adequately capitalized well above the minimum regulatory threshold of 9% Capital Adequacy Ratio, my study has highlighted the fact that in case Basel 3 changes get implemented in India, from the stipulated date in 2012, their would be substantial reduction in the Tier I Capital of Indian Banks with the % reduction in Tier I capital as high as 25% for IDBI,Central Bank, while a reduction range of 10-15% for SBI, PNB,Bank of India, Union Bank ICICI,Kotak,Yes Bank etc.

a. It is usually more difficult to compare services to a product and the guidelines for Procurement of Services is a problem in PSU's and Govt. purchase not only in India but across the world. In fact this in itself is a HUGE risk as the Services Sector now approaches or exceeds 50% - as opposed to Manufacturing and Agriculture - in most Economies including India.

To provide an insurance perspective, here is the list of top risks that are usually identified at an insurance company after a detailed risk assessment session.

Regulatory Changes/Actions
Customer relations/Misselling
Key skills attrition
Investment Performance
New Products approval
BCP/Disaster/Crisis situations
Inadequate IT capability
Sales & Distribution limitations
Model risk