ARCHIVED - Compliance Framework: Risk Assessment Model

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The Compliance Framework is archived.  The Supervision Framework came into effect on October 1, 2018.

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Risk Assessment Model

The Risk Assessment Model (RAM) is an internal compliance tool that helps FCAC establish relative levels of risk of individual financial entities based on items such as market presence, corporate structure, relevant market conduct data and controls. The information contained in the model is used internally by CEB to identify, define, assess and weigh risks in respect of the various business activities and behavior patterns of financial entities.

The RAM helps identify FRFEs that have a higher probability of non-compliance related to legislative provisions, voluntary codes of conduct and/or public commitments. The RAM considers relevant qualitative and quantitative information from each entity overseen by FCAC, to render a respective outcome into a single net residual risk score.

In turn, the risk scores associated with each entity allows the Agency to better focus on high-impact industry issues and aids in determining which compliance activities will be conducted by FCAC.

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