Which finding must be first remediated in order to understand is risks the organization is exposed to?

Which finding must be first remediated in order to understand is risks the organization is exposed to?
A . Finding 1
B . Finding 3
C . Finding 5
D . Finding 8

Answer: A

Explanation:

Finding 1

This finding likely pertains to foundational gaps in the organization’s risk assessment framework or the absence of a comprehensive understanding of inherent risks. Without addressing this, the organization cannot adequately identify, assess, or mitigate risks effectively.

According to CAMS-Audit standards, a thorough risk assessment is the cornerstone of an effective AML/CFT program. It helps to prioritize resources and design appropriate controls based on the identified risk levels.

Critical Role in Understanding Risks

Remediating foundational issues ensures that the organization has a clear understanding of its risk exposure across all products, services, and jurisdictions. This step is essential before addressing downstream issues such as customer due diligence (CDD) gaps or monitoring inefficiencies.

Alignment with Regulatory Requirements

FATF guidelines and CAMS-Audit practices emphasize that risk assessment should precede other remediation efforts. Without this, the organization may address symptoms rather than root causes of compliance and operational risks.