Risk Assessment

45 Minutes
For all staff
Global

This in-depth IIRSM-accredited compliance course helps global staff understand risk assessment as a clear, repeatable process, from spotting a risk to deciding what to do about it. Risk categories help: financial risk, operational risk, strategic risk and external risk behave differently. Each is rated by probability, impact and proximity, then plotted on a risk matrix or risk heat map to give a risk score. Inherent risk exists before controls, and residual risk remains once they’re applied.

Next comes the decision. Risk evaluation compares the score with your organisation’s risk appetite and risk tolerance, and a risk threshold shows when action’s needed. Risk treatment, risk mitigation and risk control follow, supported by risk monitoring and risk documentation. Finally, advanced tools, such as risk models, Monte Carlo simulations, probability trees, sensitivity analysis and expected monetary value (EMV), put numbers on uncertainty.

What you’ll learn in
this course

Perform the overall risk assessment process
Estimate the probability and impact of risks
Assess the proximity and expected value of risks
Use different methods and techniques to assess risks, such as risk matrices and heat maps
Distinguish between inherent and residual risk
Understand how risk models work and how you can apply them
Create a summary risk profile and risk map for any risks you come across in your role

Hear from our customers

Skillcast is easy to set up and use. You can design the colours of the platform to fit you company branding. Support team are very helpful and nothing is too much trouble.

Feefo Customer Rating ★★★★★ 4.9/5

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Your questions, answered

Risk Management

How does conduct risk differ from compliance risk?

Conduct risk focuses on behaviour and outcomes, how actions affect customers and markets - while compliance risk relates to failing to meet legal or regulatory requirements. Conduct risk is broader and more subjective, often tied to culture and ethics.

Who is responsible for managing conduct risk within a firm?

While senior leadership sets the tone, managing conduct risk is a shared responsibility across all levels, from front-line staff to compliance teams. Everyone plays a role in identifying and mitigating risky behaviour.

Can conduct risk exist in non-financial sectors?

Yes. Although the FCA regulates financial services, conduct risk principles apply across industries. Any business that interacts with customers or influences markets can face conduct-related challenges.

How can technology help reduce conduct risk?

Tools like automated monitoring systems, AI-driven analytics, and e-learning platforms can help detect risky patterns, reinforce ethical behaviour, and ensure consistent training across teams.

How often should proliferation financing risk assessments be updated?

Best practice suggests reviewing risk assessments annually or whenever there are significant changes in business operations, customer profiles, or geopolitical developments.

Why is risk scoring important for my business?

Identifying potential risks around your business is not enough. Tracking how your company manages them helps you implement policies to prevent them. The best way to get started is with a risk scoring matrix.

What is a risk scoring matrix?

A risk scoring matrix helps identify the level of risk for specific activities, such as personal data. By measuring the likelihood of something happening against how serious the consequences would be, it helps you see which areas to focus on. And what policies or procedures to put in place.

Risk Assessment