Step 02 / Explore the workbook

See the risks. Understand the controls.

A visual view of what is inside the Consumer credit edition, before you open Excel. Choose a tab to explore the illustrative worked example.

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Consumer credit

Financial crime risk assessment · illustrative example firm: Quillstone Credit Limited

Change firm type
29
Pre-seeded risk factors

Editable in your copy

5
Risk categories

Regulation 18(2)(b)

05
High or very high inherent risks

Illustrative profile

01
Categories above appetite

After example controls

bwra-consumer-credit-worked-example.xlsxIllustrative data

Inherent risk exposure

Example placement of 28 sector risks across a 5 × 5 matrix, before controls

Impact ↑

Likelihood →

LowMediumHighVery highTop ten risk, by rank
  1. 1: AI-enabled document fraud and identity circumvention, score 16
  2. 2: Application fraud and impersonation, score 16
  3. 3: Customers found to have provided false or stolen identification, score 16
  4. 4: Non-face-to-face relationships without safeguards, score 12
  5. 5: Fraud proceeds and mule activity, score 12
  6. 6: Introducers, brokers and retailers, score 9
  7. 7: Outsourcing and third-party delivery, score 9
  8. 8: New products, business practices and technologies, score 9
  9. 9: Early settlement or overpayment out of profile, score 9
  10. 10: Payments from unknown or unassociated third parties, score 9

Risks by theme

Illustrative concentration, not live firm data

  • Transactions9
  • Customers7
  • Countries or geographic areas6
  • Delivery channels4
  • Products or services2

Reading the example. Compare inherent exposure with the controls in place. Residual risk can remain material even where controls exist, and must be assessed on evidence.

Top risk drivers

  1. 01AI-enabled document fraud and identity circumventionVery high
  2. 02Application fraud and impersonationVery high
  3. 03Customers found to have provided false or stolen identificationVery high

What the workbook calculates

Risk scores, risk ratings, control strength and residual exposure against your appetite, in this example 9.7 inherent falling to 5.2 residual. Every rating can be changed as you complete your own assessment.

Formula-led scoring
See the actual workbook · real Excel sheets, rendered from the example file
Consumer credit: Inherent risk heatmap with category scores (illustrative example)Risk heatmap · opens full sizeConsumer credit: Residual risk dashboard against risk appetite (illustrative example)Residual dashboard · opens full sizeConsumer credit: Top ten inherent risks with rationale (illustrative example)Top risks · opens full sizeConsumer credit: Controls assessment with design and effectiveness ratings (illustrative example)Controls summary · opens full size

Built from the same data and formulas as the worked-example workbook, for an invented firm. All figures are illustrative.

About the Consumer credit edition

Consumer credit lenders and finance providers assessing money laundering and fraud exposure. Check first whether your firm is a relevant person. Reg 10(3)(b) takes some creditors with limited activities out of the definition of a financial institution, so confirm your position with your legal adviser or supervisor. If you are in scope, this workbook applies. If you are not, the same method still supports your wider financial crime risk assessment.