An interesting recent poll about compliance shows that 45% of firms screen their counterparties for risk on a daily or weekly basis. But a quite significant 39% still screen only annually. A remaining 10% screen monthly or quarterly, and 6% just one-time only at on-boarding.
We can only believe that the frequency with which firms screen their counterparties for risk will increase.
But just what risks are you screening for amongst your counterparties? The same poll revealed 100% were screening for regulatory risks; 78% for reputational risks; and 51% for financial.
The poll was conducted by counterparty data specialists CounterpartyLink, risk intelligence company Regulatory Data Corp. and technology and digital media lawyers Kemp Little LLP following a webinar they ran recently with 115 attendees from a range of financial institutions across Europe. Respondents included compliance officers, financial controllers and chief accountants, on boarding analysts, Money Laundering Reporting Officers (MLROs), heads of legal and more.